ISLAMABAD: China has given Pakistan a credit line worth $1.6 billion to stave off a balance of payments crisis, two Pakistani central bank sources said on Thursday, with cash earmarked for boosting fast-depleting foreign currency reserves.
Two State Bank of Pakistan (SBP) sources told Reuters the credit facility that accompanies a currency swap agreement between SBP and China’s central bank has been hiked to 20 billion yuan ($3.13 billion) from 10 billion yuan.
“This arrangement has been finalised,” said one SBP source, who spoke on condition of anonymity. A second source confirmed the agreement and the figures.
Meanwhile, China´s central bank said on Thursday it has signed a three-year bilateral currency swap agreement with Pakistan worth 20 billion yuan ($3.13 billion).
The People´s Bank of China (PBOC) said on its website the swap deal would help bilateral trade and investment.