Pakistan has received a much needed boost to its foreign exchange reserves with the State Bank of Pakistan receiving $700 million from China Development Bank. The funds come at a time when the country’s bailout programme with the International Monetary Fund (IMF) remains stalled, and foreign exchange reserves held by the SBP had increased by only $66 million, leaving Pakistan’s policymakers scrambling to secure inflows. To revive the IMF programme, Pakistan has implemented several prior conditions, including passing a mini-budget that imposed nearly Rs170 billion of taxes. The receipt of the $700 million from China Development Bank will be a welcome relief for the country.
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