ISLAMABAD – Pakistan’s foreign exchange reserves have increased by $593million; now standing at $17.71 billion by April 28, 2018.

According to reports, Pakistan borrowed a $600 million loan fromGovernment-run China Development Bank and another $600million from thestate-owned Industrial and Commercial Bank of China, which is alsooperating a branch in Pakistan.

The borrowing has given some respite to the economic managers and thepresent government which is trying to avoid going to the InternationalMonetary Fund (IMF) to improve the balance of payments situation. Lendingfrom IMF is a political issue in the country, which could damage thereputation of the present government at a time when the general electionsare nearing.——————————

The country received inflows of more than $1.2 billion from China, asloans, to offset the deteriorating situation of its trade deficit and itsnegative impact on the currency.

However, the net increase in foreign exchange reserves was just $593million due to the outflow of foreign exchange on the account of debtservicing and repayment of loans to various international banks andagencies.——————————

The country’s overall foreign exchange level stands at $17.71 billion. Thecentral bank maintains reserves of $11.51 billion while the private banksmaintain reserves of $6.202 billion.