Amid political instability, Pakistan does not show signs of securing external funding for the time being.
Islamabad:
Pakistan received $1 billion from China as a significant bailout to the cash-strapped country, ARY News reported, citing the National Bank of Pakistan.
“We would like to inform you that we have received $1 billion from China,” the People’s Bank of China said in a brief message to reporters on Friday night.
China’s payment has become a beacon of hope for the country, which is awaiting the release of loans from the International Monetary Fund bailout program.
Commenting on the country’s declining foreign exchange reserves, Finance Minister Ishak Dar said $1.3 billion recently paid to settle Chinese loans will be refinanced by China today or Monday.
“SBP will receive $1.3 billion from China today or Monday,” said Ishak Dar, according to ARY News, adding that $2 billion swap talks are also underway with the Chinese government.
Pakistan’s economy is in turmoil amid delays in a deal with the IMF to release vital funds to avert the risk of a financial crisis and default.
Amid the political instability in Pakistan, there is no sign that it will be able to secure external funding for the time being.
Earlier, the IMF expressed dissatisfaction with Pakistan’s recently proposed budget.
Pakistan has barely enough foreign exchange reserves to cover a month’s worth of imports. Dorn said the IMF had hoped to release $1.1 billion in funds in November, but the IMF demanded a number of conditions before releasing any more money.
Dahl held several meetings but was unable to convince IMF officials to complete the 9th review, which is essential to secure staff-level agreement for the release of the $1.1 billion tranche. rice field.
If Pakistan does not reach a deal with the IMF, it has only two weeks left before it faces a failure that will severely impact its economy. According to Dawn, the relief will expire on June 30.
Pakistan’s IMF program expires this month, but more than $2.5 billion is still released as the country tries to reach agreements with financial institutions while grappling with record inflation, fiscal imbalances and low reserves. It has not been.
With general elections slated for November, the government has eased uncertainty caused by protests led by Pakistan’s chairman Tehhrik-e-Insaf (PTI) since he was sacked in a no-confidence vote last year. I hope it will be resolved.
An IMF staff-level agreement to release $1.1 billion of a $6.5 billion package has been delayed since November.
(Except for the headline, this article is unedited by NDTV staff and published from a syndicated feed.)
