China likely to provide US$ two bln to Pakistan: sources

KARACHI: China will deposit US$ two billion with Pakistan to help the country in its balance of payment crisis, Ministry of Finance sources told ARY News.

The expected two billion dollars are likely to be received in a single tranche this month, the sources further said.

The United Arab Emirates (UAE) also expected to provide a similar package to Pakistan including the loan and deferred payment facility for the oil.

Finance Minister Asad Umar in a recent interview had said that Pakistan’s balance of payment crisis comes to an end. He also said that China and UAE are expected to extend financial support to Pakistan.

The State Bank of Pakistan recently received an installment of one billion dollars from Saudi Arabia’s relief package for Pakistan.

Saudi Arabia had announced a package for Pakistan after Prime Minister Imran Khan’s visit of the kingdom.

The central bank has so far received two bln dollars from Saudi Arabia.

After recent tranche of Saudi package the foreign exchange reserves of the country had reached to US 9.24 bln dollars.

The next installment from Saudi Arabia likely to be received in January next year.

The Saudi government had in October agreed to provide Pakistan $ three bln for foreign exchange support for a year to address the country’s balance of payments crisis.

The Kingdom had also agreed to provide Islamabad a one year deferred payment facility for import of oil, worth up to another three billion dollars.

Pakistan had received the first installment of one billion dollars from Saudi government on November 9, which provided relief to the balance of payments woes of the country. Fresh Saudi tranche provided relief to the foreign exchange reserves and stabilized the value of the rupee against US dollar.