China will be depositing $2.1 billion into the State Bank of Pakistan’s account by March 25.
This is will strengthen the country’s foreign exchange reserves, which are currently at $8.8 billion.
The government was able to secure back to back aid packages from Saudi Arabia and the UAE during Prime Minister Imran Khan’s visits to these countries last year.
The Saudi government has dispatched the $3 billion it had pledged in support of our foreign exchange reserves. The UAE, on the other hand, has sent $2 billion and will send another $1 billion soon.
As Pakistan started receiving these loans, the dollar became stable. However, the current level of reserves, $8.8 billion, is still below the sustainable level. That is it is not enough to cover three months of import payments.