According to sources cited by The Republic Policy News on Tuesday, Pakistan has requested China to extend the $2 billion State Administration of Foreign Exchange (SAFE) deposits by another year, a request that has been conveyed to the International Monetary Fund (IMF).
During Monday night’s virtual meetings, the Ministry of Finance and State Bank of Pakistan (SBP) presented their external financing plan to the Fund, aiming to raise the country’s dwindling foreign exchange reserves to $10 billion by the end of June.
The IMF program’s revival is expected to help Islamabad secure the required dollar funding from multilateral, bilateral, and commercial financing avenues. The Chinese SAFE deposits worth $4 billion are due for maturity in the coming months, and Chinese officials have verbally assured Pakistan of approving the rollover, although a formal announcement is preferred.
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