The Financial Times on Tuesday reported that China will lend around $2 billion to bolster Pakistan’s foreign exchange reserves and avert further devaluation of the rupee against the greenback.
The newspaper said that two senior government officials informed China would be providing Pakistan $2 billion to prevent further depreciation of the rupee against the dollar and boost its declining forex reserves.
A senior government official In Islamabad said, “China’s promise to Pakistan is an indication of their commitment to help us avoid a crisis. If the rupee falls sharply and we need to prevent its slide, we can turn to China.”
According to the report, China isn’t officially announcing the financial support it is extending to Pakistan as the government faces high debt repayments, fiscal decline and sliding forex reserves.