Prime Minister Pakistan, Shahid Khaqqan Abbasi today arrived in southern island province of China, Hainan to attend Boao Forum where he is expected to meet President Xi Jinping.
According to preliminary reports, Prime Minister Shahid Khaqqan Abbasi will discuss Pakistan’s declining reserves and ask for China’s help in propping up Pakistan’s forex account.
Pakistan’s forex liquid reserves have been depleting at alarming pace over the last few years down from $ 20.686 billion in Dec, 2017 to $17.796 billion in Mar, 2018. Pakistan has been borrowing sums from different global organizations to fill up the current account gap, other than issuing Sukuk and Euro bonds in international markets.
On 6th April, International Islamic Trade Finance Corp – the financing arm of Islamic Development Bank – had agreed to lend Pakistan $3.285 billion for a period three years. As per the reports released by the Jeddah based fund, $ 3 billion of said funds will finance trade activities in Pakistan, whereas, the remaining $ 285 million would be to finance gasoline purchases.
Boao Forum, dubbed as Asia’s equivalent of Davos will be held during 8th to 11th April, 2018. China is expected to unveil new measures on reform and opening up at the annual forum.
According to latest reports, China is expected to roll out fresh market-opening measures this year as 2018 marks the 40th anniversary of China’s landmark economic reforms and opening up under former leader Deng Xiaoping.
