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$2.1b from China to be deposited into State Bank’s account by March 25


Photo: AFP

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.

Related: Dollar hits four-month high

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.

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