China allows Pakistan to use $1 billion
China has allowed Pakistan to use $1 billion in a bank. According to the details, China has allowed Pakistan to use $1 billion in bank budget support and after this permission, the government has to borrow Rs 165 billion to Rs 169 billion locally from banking and non-banking institutions will not be required.
Sources said that China has allowed the use of one billion dollars in rupees to meet the budget requirements. In this regard, when the spokesman of the Ministry of Finance was contacted, he said that China had accumulated. The money is a government loan, which means that the government of Pakistan will receive the money in Pakistani rupees.
China has deposited the largest amount in the SBP to improve Pakistan’s foreign exchange reserves. At present, Pakistan’s foreign exchange reserves are $19.6 billion, of which the SBP has $12.6 billion, while the commercial banks have $7.01 billion. There are fears of an increase in imports in the coming days which could lead to imbalances. Economist Dr Ashfaq Hassan Khan says the government forced the SBP governor to cut interest rates, reducing loans by Rs 200-300 billion.