China Invests Around 2.2 billion USD In The Dwindling Forex Reserves In Pakistan

China Invests Around 2.2 billion USD In The Dwindling Forex Reserves In Pakistan

China has invested around 2.2 billion dollars in Pakistan’s forex reserves that is dwindling during this pandemic. The investment is made to help Pakistan deal with the crisis and make sure that their forex market is up and running.

With this assistance from China, Pakistan will receive about 9.1 billion dollars from other friendly countries in this year. China has almost invested about 4.1 billion dollars in Saudi Arabia and UAE to help their forex reserves cope up with this current pandemic situation.

The SBP (State Bank of Pakistan) has received almost RMB 15 billion in terms of the loan by Pakistan’s government. The spokesperson of the Finance Ministry of Pakistan stated that the funds are deposited in the SBP that would help them in strengthening the monetary situation within the country. The reserve of SBP is now standing at 8.84 billion dollars. The latest deposits from China will soon boost the reserves of SBP to a double-digit number after almost a year gap.

Pakistan is seeing a higher number of imports when compared to exports and also releasing a lot of money as debt repayments. This is now allowing its reserves to become stable. The government is also financing partially to such international payments utilizing the reserves.

Riyadh is now enabled after receiving a funding of 3 billion dollars’ petroleum and oil supply in terms of deferred amount. Asad Umar, who is the finance minister of Pakistan, has evaluated a financial gap of about 12 billion dollars and another 7 to 8 billion dollars in the next fiscal year.