China to provide $3.5 billion in loans & grants to Pakistan

$1billion grant

China is to provide $3.5 billion in loans and grants to Pakistan in order to boost the foreign exchange reserves of the country.

A news report by Voice of America (VOA) suggested that China will very soon add $2.5 billion in the State Bank of Pakistan (SBP). Once added, the total amount of loans given to Pakistan this financial year will reach $4.5 billion.

Furthermore, according to the officials, Beijing will be offering another $1 billion to Pakistan to alleviate health, educational, vocational training and poverty related projects in next years’ time.

According to the Minister for Planning, Development and Reform Makhdoom Khusro Bakhtiar, the Chinese experts will arrive in Pakistan later in February and take decisions regarding social-economic development in Pakistan under the pledged grant.

For months, the foreign exchange reserves in the country have remained under pressure. On Feb 8th they were recorded at $8.2 billion.

Before Saudi Arabia and UAE pledged $3 billion and $1 billion to Pakistan, the State Bank’s reserves dropped below the $7 billion mark. After the package offered by friendly countries, Pakistan’s reserves went over $8 billion.

Now as per the reports it is expected that Saudi Arabi has plans of investing $7billion in the power sector of Pakistan.

Read more: Saudi Arabia to Make Huge Investments in Pakistan

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