Pakistan receives $2.1b from China tomorrow

ISLAMABAD: Pakistan will receive $2.1 billion from China by tomorrow (Monday), which would further strengthen country's balance of payment situation, Adviser and Spokesman for Ministry of Finance Dr Khaqan Najeeb said.

"The ministry of finance has completed all procedural formalities with Chinese counterpart for facility of RMB 15 billion equivalent to $2.1 billion," the advisor said in a tweet here Saturday.

He said that the funds would be deposited in the State Bank of Pakistan (SBP) account by Monday March 25, adding that it would further strengthen foreign exchange reserves position and ensure balance of payment stability.

Meanwhile, the advisor clarified that the discussions with international partners do not entail any target level of exchange rate.

In a tweet, the spokesman said that focus was on further strengthening the exchange rate regime, aligning it and keeping it consistent with the evolving macroeconomic fundamentals of the economy. He said the news related to fixing exchange rate target was baseless and unfounded.

"Clearly no target PKR/USD exchange rate is envisaged. Speculation baseless and unfounded," he tweeted.

He said State Bank of Pakistan's economic models point to the real effective exchange rate at equilibrium value. He said stability in balance of payment was ensured with a fall in current account deficit and more than adequate foreign financing availability.