Pakistan, facing a financial crisis, has received $1 billion from its close ally China. Amid uncertainty about getting loan assistance from the International Monetary Fund (IMF), the country, which is struggling with very low foreign reserves, will get a lot of relief from this help. In recent weeks, Pakistan’s currency reserves have dwindled to around US$3.9 billion.
On Friday night, the State Bank of Pakistan (SBP) confirmed the receipt of the amount from China without sharing any other details. In recent weeks, Pakistan’s currency reserves have dwindled to around US$3.9 billion.
Earlier, Finance Minister Ishaq Dar had said that Pakistan paid USD 1 billion to China last Monday against the liability of USD 1.3 billion and hoped that the amount would be returned.
Pakistan’s economy is on the verge of defaulting on payments. The IMF had agreed to give him $6.5 billion in loan assistance in 2019, but he has not received $2.5 billion. IMF has put some conditions for releasing this amount. On the other hand, Pakistan says it has already fulfilled the conditions of the IMF. The debt support program of the IMF is coming to an end on 30 June.
Pakistan is looking for an alternative to keep its economy afloat without IMF help. China is expected to give him a bilateral loan of $4 billion.
