REUTERS/Jose Luis Gonzalez/File Photo
BEIJING:In a major development, China has agreed to immediately give a $2 billion loan to Pakistan, a move meant to arrest the sliding official foreign currency reserves and provide much-needed breathing space to the new government.
The $2 billion loan will be categorised as an “official bilateral inflow”, said sources in the Ministry of Finance and the State Bank of Pakistan (SBP). They said that over $1 billion has already been transferred to the SBP accounts this week, and would reflect in the reserves’ data to be released on August 2. The amount will push SBP-held foreign currency reserves past $10 billion.