Pakistan receives $2.1 billion from China

ISLAMABAD (92 News) – Pakistan on Monday received 2.1 billion US dollar from China, which would ensure balance of payment stability. In a tweet, Finance Ministry’s Spokesman Dr Khaqan Najeeb confirmed that China deposited worth of RMB 15Bn equiv to $2.1Bn received in State Bank of Pakistan (SBP). “Deposit of RMB 15Bn equiv. to $2.1Bn received in #SBP A/C on Mar 25th 2019 from #China. Successful GoP multipronged strategy to ensure stability in #BOP including curtailing C/A, improving #remittances & ensuring adequate #FX financing. FX #reserves increase to comfortable level, the Finance Ministry’s spokesman tweeted.

Deposit of RMB 15Bn equiv. to $2.1Bn received in #SBP A/C on Mar 25th 2019 from #China. Successful GoP multipronged strategy to ensure stability in #BOP including curtailing C/A, improving #remittances & ensuring adequate #FX financing. FX #reserves increase to comfortable level.

— Dr. Khaqan Hassan Najeeb (@KhaqanNajeeb) March 25, 2019

https://www.youtube.com/watch?v=VshmoNyf3Pk Earlier, in a tweet, Dr Khaqan Najeeb said that the funds would be deposited in the State Bank of Pakistan and it would also strengthen foreign exchange reserves position.

Ministry of #Finance has completed all procedural formalities with #Chinese counterpart for facility of RMB 15 Billion equivalent to $ 2.1 Billion. The funds will be deposited in the SBP account by Monday 25th March. Will further strengthen FX #reserves and ensure #BOP stability.

— Dr. Khaqan Hassan Najeeb (@KhaqanNajeeb) March 21, 2019

Dr Khaqan also clarified that the discussions with international partners do not entail any target level of exchange rate.

Clearly no target PKR/USD exchange rate is envisaged. Speculation baseless & unfounded. SBP Economic models point to the Real Effective #Exchange Rate at equilibrium value. #BOP stability ensured with a fall in C/A & more than adequate foreign financing availability. (1/2)

— Dr. Khaqan Hassan Najeeb (@KhaqanNajeeb) March 22, 2019

The spokesperson said that the focus was on further strengthening the exchange rate regime and keeping it consistent with the evolving macroeconomic fundamentals of the economy. He termed the news regarding fixing the exchange rate target as baseless and unfounded.

Clearly no target PKR/USD exchange rate is envisaged. Speculation baseless & unfounded. SBP Economic models point to the Real Effective #Exchange Rate at equilibrium value. #BOP stability ensured with a fall in C/A & more than adequate foreign financing availability. (1/2)

— Dr. Khaqan Hassan Najeeb (@KhaqanNajeeb) March 22, 2019

The adviser and spokesman of Finance Ministry said that State Bank of Pakistan’s economic models points to the real effective exchange rate at equilibrium value. Adding stability in the balance of payment was ensured with a fall in current account deficit and more than adequate foreign financing availability, he added.