Pakistan expected to get another $3bn deposits

ISLAMABAD: Pakistan is expected to receive $3 billion deposits from China and International Islamic and Trade Finance Corporation (IITFC) as discussions with the two entities are currently underway, ARY News reported Monday.

Sources said Pakistan would likely get $1 billion from the International Islamic and Trade Finance Corporation. It is learnt that the amount would be used to streamline balance of payments.

While, $2 billion from China, could be used for stabilizing foreign reserves.

Sources said the talks with China for obtaining $2 billion were in the final phase, and expected to end by the end of March.

Read: Pakistan to soon receive second tranche of $2 billion from Abu Dhabi fund

China had also deposited $2 billion to Pakistan a few weeks ago.

The State Bank of Pakistan (SBP) last week signed an agreement with Abu Dhabi Fund for Development (ADFD) for the placement of the second tranche of US$2 billion.

It may be recalled that the first tranche of US$ 1.0 billion has already been received by SBP in January 2019.

On January 22, Pakistan and the UAE had reached an agreement on $3bn support Package in Abu Dhabi.

SBP Governor Tariq Bajwa and Abu Dhabi Fund for Development’s chairman had signed on the agreement in Abu Dhabi. UAE is providing the loan to Pakistan to help enhance liquidity and to support the country’s financial and monetary policy.