Pakistan to receive $500-600mn from China excluding rollover

October 19, 2023 (MLN): Pakistan is set to receive a substantial financial boost of $500-600 million from China, in a deal that excludes any rollover agreements, sources closed to the matter told Mettis Global News on Thursday right after the meeting of Pakistan’s Caretaker Prime Minister Anwaarul Haq Kakar and Chinese President Xi Jinping.

This meeting took place on the sidelines of the 3rd Belt and Road Forum.

The aforesaid inflow will help SBP reserves to cross the $8 billion mark.

To recall, China rolled over a principal amount of $2.4bn loan to Pakistan for a period of two years, in order to foreign reserves on the back of an IMF deal which helped it avert a default.

At present, total foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by $67.3mn or 0.88% WoW to $7.71bn during the week ended on October 13, 2023, according to the data released by the central bank on Thursday.

On the other hand, the country's total reserves diminished by $117.2m or 0.9% WoW to $12.91bn.

During today’s meeting, both countries discussed various dimensions of the multi-faceted Pakistan-China relationship and reaffirmed our longstanding and steadfast friendship, all-weather strategic cooperation, economic and trade ties, and CPEC.

PM Kakar reaffirmed that Pakistan would continue working with China to promote regional connectivity and economic development and to make Gwadar as a connectivity hub and for the socio-economic development of Pakistan.

President Xi reassured that China would continue supporting Pakistan’s sovereignty, territorial integrity and development.  

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