Islamabad: Following the refinancing by the China Development Bank, the foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by more the $500 million.

The central bank, in its weekly bulletin, said that its foreign exchange reserves have increased by $556 million to $3,814.1 million as of the week ended February 24, which will provide an import cover of around eight weeks.

During the week ending on February 24, the SBP received $700 million as the government of Pakistan commercial loan disbursement from China. However, after accounting for external debt repayments, the SBP reserves increased by $500 million.

Pakistan received $700 million loan facility from China Development Bank in February; moreover, the Chinese Foreign Ministry also said it is calling on all creditors to play a constructive role on Pakistan, when asked if China would rollover its loans to the nation.

The net foreign reserves held by commercial banks stand at $5,453.8 million, $1,639.7 million more than SBP, taking the total liquid foreign reserves to $9,267.9 million. Cash-strapped Pakistan has been trying to secure the International Monetary Fund (IMF) bailout to avert a debt default, unlock more funding and stave off severe supply shortages.

Published in The Daily National Courier, March, 03 2023

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