Connect with us

South Asia

After Saudi, UAE Financial Boost, Pakistan’s Foreign Exchange Increases by 22%



According to weekly data released by the State Bank of Pakistan, the foreign exchange reserves held by Pakistan’s central bank increased 22.88%, crossing the 8 billion dollar mark.

Earlier, the reserves fell to 6,636.1 million dollars which raised attention towards Pakistan’s ability to cope up with its financing requirements. Nevertheless, the first tranche of 1 billion dollars from the United Arab Emirates (UAE) and the last tranche of 1billion dollars from Saudi Arabia helped in stabilising the balance of payments by pushing the reserves above 8 billion dollars.

Further, China and the UAE have agreed to provide a good amount to support the fast depleting reserves. The foreign currency reserves held by State Bank of Pakistan recorded at 8,154.3 million dollars on January 25, marked increment of 1,518.2 million dollars compared with the previous week’s reserve valued at 6, 536.1million dollars.

The Increment was recorded as a result of 1,000 million dollars of cash inflows from Saudi Arabia and the UAE. The State Bank of Pakistan’s reserves increased 1,518 million dollars, after settling the outflows related to external debt and other official payments.

Overall, the liquid foreign currency reserves, held by the country, including net reserves held by banks other than the SBP, stood at $14,802.5 million. Net reserves held by banks amounted to $6,648.2 million.

The Chinese Embassy Deputy Head of Mission Zhao Lijian assured Pakistan of a financial package to boost its flagging foreign currency reserves, indicating that it would be bigger than that promised by Saudi Arabia.

China also agreed to directly give a loan of $2 billion to Pakistan to provide much-needed help to the new government.

In past, the reserves drained to $9.06 billion, forcing the central bank to let the rupee depreciate massively for the fourth time since December 2017 and raising concern about the country’s ability to finance a massive import bill as well as meet debt commitments in coming months.

In April, the State Bank of Pakistan’s reserves increased $593 million due to official inflows. A few months ago, the reserves grew due to official inflows including $622 million from the Asian Development Bank (ADB) and $106 million from the World Bank. The bank also received $350 million under the Coalition Support Fund (CSF).

In January last year, the SBP made a $500-million loan repayment to the State Administration of Foreign Exchange (SAFE), China.

More News at EurAsian Times




Asia Pacific2 hours ago

Indian Army Has Deployed Additional 100,000 Troops Near The LAC – Top Chinese General

Despite the sixth round of Corps Commander level meeting between India and China which failed to provide any significant breakthrough,...

F18-India-Deal F18-India-Deal
Featured2 hours ago

NATO Commitment Forces Germany To Acquire F-18 Super Hornets & Reduce Number Of Typhoons

German President Frank-Walter Steinmeier is looking to procure the new Eurofighter Typhoons and F-18 Super Hornets to bridge the gap...

Expert Reviews4 hours ago

‘Hot Winters’ Ahead – China Says PLA Needs To Teach A Harsh Lesson To ‘Insincere’ India – Analysis

The portents of war between China and India seem to be getting more and more darker by every passing day....

Featured10 hours ago

SAAB Delivers Gripen-E Jets To Brazil; Offers ‘Exceptional Deal’ To The Indian Air Force

With India’s new FDI model under the new indigenization drive, SAAB has seen it as a lucrative offer and is...

Europe11 hours ago

After Rafale Jets, This Air Force Wants Stealth F-35s That Was Once Meant For Turkey?

While some recent reports indicated that with the arrival of F-35s, UAE cold shed some of its F-16s and sell...

j20-vs-tejas j20-vs-tejas
Asia Pacific12 hours ago

Taiwanese Expert Says ‘Bathrooms Best Place To Hide’ During Chinese Air Raids, Missile Attack

As tensions between China and Taiwan are only increasing day by day, former Ministry of Defense advisor Sung Chao-wen on...

Featured15 hours ago

Indian SU-30 MKI Jets Loaded With BrahMos Missiles Practice Hitting Chinese Assets Far Away From Ladakh

Soaring tensions between India and China in Ladakh has seen both the sides deploying thousands of troops, heavy artillery and...

China-and-India China-and-India
Asia Pacific15 hours ago

India-China War Highly Unlikely; Beijing Only Testing Indian Resilience – Experts

India-China War: The joint statement following the meeting said that ministers had a “frank and constructive discussion on the developments...

imran-khan imran-khan
Featured16 hours ago

India, Pakistan Clash At UNGA – Indian Diplomat Walks Out As Imran Khan Goes All-Out Over Kashmir

India strongly reacted to Pakistan PM Imran Khan's speech at UNGA calling it a 'diplomatic low'. India's envoy to the...

J-10VSF-16 J-10VSF-16
Featured1 day ago

Next US Intervention In Taiwan & There Would Be No Taiwan – China

Amid suggestions for the United States to deploy its troops to Taiwan, Chinese military experts have warned that any such...