Pakistan's foreign exchange reserves cross US$16 bn: SBP

KARACHI: The State Bank of Pakistan (SBP) has announced that the country’s foreign exchange reserves have been increased by US$2.071 billion, following a rollover of a loan from Chinese banks, ARY NEWS reported.

According to the SBP, the total liquid foreign reserves held by the country stood at US$ 16.1956 billion as of June 24.

Detailing the breakup of the foreign exchange reserves, the central bank said the reserves held by the State Bank of Pakistan stands at US$10.309 billion followed by commercial bank reserves at US$5.8866 billion.

It shared that during the week ended on June 24, the SBP received proceeds of CDB loan amounting to RMB 15 billion. “After accounting for external debt repayment, SBP’s reserves increased by US$2.071 billion.”

On June 24, Finance Minister Miftah Ismail confirmed that the State Bank of Pakistan (SBP) has received a Chinese consortium loan of RMB 15 billion ($2.3 billion) to aid the depleting foreign exchange reserves.

Taking to Twitter, the finance minister wrote: “I am pleased to announce that a Chinese consortium loan of RMB 15 billion (roughly $2.3 billion) has been credited into SBP account today”.

Miftah Ismail noted that the loan received from China has increased the country’s foreign exchange reserves.

It is pertinent to mention here that Pakistan had signed a loan facility agreement with a Chinese consortium of banks to aid the depleting foreign exchange reserves and depreciation of the local currency.

“We thank the Chinese government for facilitating this transaction,” wrote the finance minister on his Twitter account.