Pakistan’s State Bank of Pakistan (SBP) foreign exchange reserves have surpassed $4 billion as a result of the nation receiving a $500 million loan from the Industrial and Commercial Bank of China (ICBC).
The SBP reported an increase in foreign exchange reserves of $487 million, bringing the total as of 3 March to $4,301 million, covering imports for around a month. This was a portion of the ICBC’s $1.3 billion facility, which came after a different loan from the China Development Bank for $700 million.
The $350 billion economy of Pakistan is struggling to restart its stalled International Monetary Fund (IMF) programme, and these loans were crucial as the government has not received money from any other nation other than China.
In the upcoming months, $7 billion in repayments are expected, including a $2 billion Chinese loan that is due in March. The Pakistani rupee, which has hit a record low of Rs282.30 against the dollar in the interbank market, can only rise to Rs265 if circumstances improve, analysts are quoted as saying by Geo.
In the meantime, the government has imposed import restrictions due to a cash crunch, which has led to the partial shutdown of textile and auto manufacturing, creating concerns about job loss.