ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif announced on Tuesday that China has rolled over a $600 million loan to Pakistan, providing crucial support to the country’s foreign exchange reserves.
During the launch of the Prime Minister’s Youth Sports Initiative in Islamabad, PM Shehbaz stated that the Exim Bank of China facilitated the loan rollover, resulting in a $600 million increase in foreign exchange reserves. He emphasized the need to generate income rather than rely on loans and expressed confidence in Pakistan’s youth to excel in various fields such as sports, information technology, industries, and agriculture.
This move comes in addition to over $5 billion in loans that China has rolled over for Pakistan in the past three months, helping the nation avoid a default situation during negotiations for an IMF bailout.
Pakistan recently secured a last-minute $3 billion bailout package from the International Monetary Fund (IMF) on June 30, with an initial upfront disbursement of around $1.2 billion. Furthermore, financial assistance of $2 billion from Saudi Arabia and $1 billion from the UAE after the IMF agreement has helped stabilize Pakistan’s economy, according to Finance Minister Ishaq Dar.
Pakistan’s Foreign Exchange Reserves
The State Bank of Pakistan reported a surplus of $334 million in the current account for June, indicating a positive trend. Minister Dar shared these figures in a tweet, highlighting that the country avoided defaulting on its financial obligations.
Current Account Surplus (CAS) for June2023 closed @ $ 334 million against Current account Deficit (CAD) of
$ 2,321 million in June2022CAD for FY23 closed @
$ 2.56 billion, which is 14.65% of CAD of US$ 17.48 billion for FY22.That’s how Pakistan didn’t default! AlhamdoLilah
— Ishaq Dar (@MIshaqDar50) July 18, 2023
The prime minister praised athletes for bringing glory to Pakistan through their performances and announced an allocation of Rs5 billion in the budget to promote sports. He further expressed his party’s commitment to providing additional resources for education, skills development, and the promotion of sports if given the opportunity after the elections.
Radio Pakistan reported that the Prime Minister’s Youth Sports Initiative includes the establishment of the Sports Endowment Fund, the country’s first sports university in Islamabad, the Elite Sportsperson Development Program, and measures to promote traditional and e-sports.
Minister for Interprovincial Coordination Ehsan-ur-Rehman Mazari highlighted the numerous initiatives taken in the past 15 months to strengthen sports infrastructure in the country. He mentioned the formulation of a sports policy to promote various sports and the introduction of structural reforms to enhance the competitiveness of Pakistani youth in international events.
