Islamabad: Pakistan has decided to borrow $600 million from China to increase its forex reserves as its foreign currency reserves have declined by USD 1.7 billion due to end of the International Monetary Fund programme.
This is for the second time that the ruling Pakistan Muslim League-Nawaz government has decided to take help of a friendly country in the last three years to enhance its forex reserves as earlier $1.5 billion were gifted by Saudi Arabia to Pakistan in 2014.
The Express Tribune quoted finance ministry sources as saying that a meeting was held by the country's top economic managers on Thursday to work out details for the Chinese loan.
The meeting was attended by State Bank of Pakistan Governor Ashraf Wathra, Finance Minister Ishaq Dar and Finance Secretary Tariq Bajwa.
The loan will be provided on commercial terms by the Bank of China and is likely to be given at an interest rate ranging between 3.1% and 3.2% for a period of three years.