To boost dwindling foreign exchange reserves, Pakistan asks China for $3 billion

Next week, Pakistani Prime Minister Imran Khan will visit Beijing and seek an investment bonanza in half a dozen sectors, including a $3 billion loan from China to stabilize its dwindling foreign currency reserves.

Additionally to engagement on political issues, the Pakistani premier would seek Chinese support on financial, trade, and investment fronts.

The report said a senior finance ministry official told reporters the government was considering submitting a request for approval to China for another $3 billion loan to China's SAFE deposits, the State Administration of Foreign Exchange.

In addition, China has invested around $11 billion in Pakistan in the form of commercial loans and foreign exchange reserves support initiatives, including $4 billion in SAFE deposits.

Approximately $16.1 billion worth of Chinese money is part of the country's current official foreign exchange reserves.

Over Rs 26 billion in interest costs were paid to China in the last fiscal year to repay the maturing debt using the $4.5 billion Chinese trade finance facility.

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