– TK for refinancing agreed, cash inflow expected “soon”
— Help help Coast up foreign exchange reserves
ISLAMABAD: China, Pakistan’s ‘iron friend’, came to its aid on Thursday with Chinese banks agree to refinance Pakistan with $2.3 billion worth of funds which, according to Finance Minister Miftah Ismail, up Foreign Exchange Reserves of Pakistan.
Taking to social media blog site, Twitter, Finance Minister Miftah Ismail tweeted: “Ok news. terms and conditions for refinancing of A deposit of 15 billion yuan (about $2.3 billion) from Chinese banks has been agreed.”
Finance minister added that the influx is expected “soon” after some routine negotiations on both sides, adding that this help Coast up country’s foreign exchange reserves.
news becomes a lifeline as the country already facing uncertain economic situation due to delay in revival of stalled multi-billion dollar program of the International Monetary Fund (IMF).
development came as a huge relief to politicians who saw the foreign exchange reserves held at the State Bank. of Pakistan (SBP) fell to $10.09 billion with level remains at the level of less than 1.5 months of import case.
Agreement with Chinese banks are expected to replenish reserves and allow the country to make import payments while providing loans. support to the rupee that lost over 25% from the moment start of outgoing fiscal year 2021-22.
Restoration of Postponed IMF program in Pakistan suspended on in government Russia’s ability to make fiscal adjustments of about 2.5 percent percent percent of gross domestic product (GDP) by increasing income and reducing spending in forthcoming budget 2022-23.
Previously on Saturday lastMiftah Ismail said Pakistan is expected to reach an agreement with IMF in June to revive expanded financial aid package to support in cash- country sagging economy. He said the country is projected need US$36-37 billion in foreign funding in in next fiscal year.
Speaking at the webinar, Ismail said that currently government did not consider the issue of growing fresh foreign debt from global capital market and commercial banks after the country international bonds lost almost one-third of their value while their earnings went up essential. He said that instead of economic growth controlling inflation was a top priority of in government.
Myth for fast edible oil import process, increase in jewelry export
Presiding over meeting of Committee on presence of edible oil on Thursday, minister was informed that price of edible oil rising on a global scale, which will have a significant impact on in trade bill of Pakistan.
Finance minister had a meeting with delegation of All Pakistan Jewelers Association led by its President Mr. Shehzad Iqbal in Finance Department, today. FBI Chairman and senior The meeting was attended by representatives of the Ministries of Finance and Trade.
The Delegation provided an overview of jewelry sector in Pakistan and its contribution in in economy. They are also highlighted the issues that faced from jewelers community about taxation and looking for governments support solve their problems and help in taxation. These problems were known to prove that great hindrance in in development of this sector.
Miftah Ismail emphasized the commitment of the present government provide a favorable and friendly environment to business community in Pakistan. He acknowledged the contribution of jewelry sector in economic development and assured the delegation to provide maximum relief in taxation in this sector.