March 5, 2023
2 mins read

Breather for Pakistan as China approves $1.3b rollover

Pakistan is currently facing growing economic challenges, with high inflation, sliding forex reserves, a widening current account deficit and a depreciating currency..reports Asian Lite News

Cash-Strapped Pakistan sees a ray of hope as the Industrial and Commercial Bank of China (ICBC) approved the rollover of USD 1.3 billion facilities.

Taking to Twitter, Pakistan Finance Minister Ishaq Dar announced, “Formalities completed [and] Chinese Bank, ICBC approved rollover of USD 1.3 billion facilities which has been repaid by Pakistan to ICBC in recent months.” He further said that the facility would be disbursed in three installments, the first one of USD 500 million has been received by the State Bank of Pakistan and added “It will increase forex reserves!”

Pakistan is currently facing growing economic challenges, with high inflation, sliding forex reserves, a widening current account deficit and a depreciating currency, reported Geo News.

Foreign exchange reserves were at USD 3.8 billion as of February 24, just enough for less than a month of imports. While the liquid foreign exchange reserves stand at around USD 9 billion which includes USD 5.5 billion in net reserves held by commercial banks.

Hours before his announcement, the finance minister revealed that China has renewed a facility under which Pakistan expected an additional inflow of USD 500 million in the “next few days”.

Highlighting the Pakistan Democratic Movement (PDM)-led government’s economic achievements, Dar said that the foreign exchange reserves held by the SBP climbed to USD 3.8 billion from USD 2.8 billion — recorded last month. He maintained that the government returned USD 6.5 billion of foreign debt during the current fiscal year, according to Geo News.

Meanwhile, on Wednesday, the Pakistan Bureau of Statistics said that the monthly inflation, measured by a basket of products called the Consumer Price Index (CPI), jumped to 31.6 per cent in February year-on-year.

Last month, prices rose at the fastest pace ever in the country’s history, according to available data, with food, beverage and transport costs driving inflation to a point where analysts fear “families will have to make choices and sacrifices,” reported the Dawn.

This was the highest annual rate since available data, i.e. July 1965, according to the research firm Arif Habib Ltd, and is also expected to rise even further in the coming months.

Inflation surpassed 30pc last month after having stayed above 20pc for eight months from June to January. Inflation was 12.2pc in February last year, reported Dawn.

Costs in four categories — transport, food and non-alcoholic beverages, alcoholic beverages and tobacco, and recreation and culture — jumped by around half. (ANI)

ALSO READ: Biden expected to tighten rules on US investment in China

Previous Story

China to hike defence budget

Next Story

Pakistan plans cross-border attack on TTP, risking border tensions

Latest from -Top News

Bangladesh Elections on EU Radar

EU Pre-Election Team to Visit Bangladesh in September Ahead of 13th Parliamentary Polls…reports Asian Lite News Bangladesh Election Commission’s Senior Secretary Akhtar Ahmed announced on Monday that a European Union (EU) pre-election

After Pakistan, China Backing Iran Too?

China and Iran signed a 25-year comprehensive cooperation agreement that covered trade, energy and security, showcasing the strategic value that Beijing places on Tehran….reports Asian Lite News Despite its long-standing claims of

US-India ties is a slow-motion catastrophe

For the first time in two decades, Trump’s actions, statements, and coercive tone have made relations with the US a combustible domestic political issue in India, writes Manoj Menon The post-globalisation uncertainty

Modi Welcomes Marcos Jr to Delhi

PM Modi Welcomes Philippines President Marcos Jr to Strengthen India-Philippines Ties…reports Asian Lite News Prime Minister Narendra Modi on Tuesday warmly welcomed Philippines President Ferdinand R. Marcos Jr at Hyderabad House in

Is Bangladesh Turning Into a Theocratic State?

The rise of radical Islamic influence under Yunus’s watch threatens to transform Bangladesh from a secular democracy into a theocratic state….writes Anna Mahjar-Barducci Nobel Peace Prize laureate Muhammad Yunus’s transition from economist
Go toTop

Don't Miss

Netherlands’s Arnhem cuts ties with Wuhan over Uyghur genocide

Majority of the Arnhem city council voted for an immediate

Poll Rigging Protests Paralyse Balochistan

Notably, women are actively participating in the protest, underscoring the