ISLAMABAD – China has agreed to provide $2.5 billion in loans to helpbolster Pakistan’s sliding foreign exchange reserves which will bedeposited with the State Bank of Pakistan (SBP).
According to a report in an English daily*, *a top government official hassaid that China has agreed to park $2.5 billion in deposits in the centralbank.
This follows the previous $2 billion loan provided by China at the end ofJuly last year to bolster foreign exchange reserves and it has come out asthe country’s biggest economic rescuer in the past five years.
This follows a $6 billion financial package agreed with Saudi Arabia whichincluded a $3 billion loan obtained at an interest rate of 3.18%.
It included a $3 billion deferred oil payment facility to Pakistan tomanage their oil import bill.
On Thursday, SBP governor Tariq Bajwa stated the procedure for $3 billionoil on deferred payments were finalized and the agreement will be signed onFebruary 16th upon the visit of Saudi Crown Prince Mohammad Bin Suleman.
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Saudi Arabia has already deposited $3 billion in $1 billion tranches eachof which the final instalment was received by the central bank last Friday.
Also, the UAE had agreed to provide a $3 billion loan to Pakistan at aninterest rate of about 3% and the first tranche of $1 billion was receivedby the central bank last Thursday.
However, a $3.2 billion oil on deferred payment facility is being awaitedfrom the UAE.
