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Pak looks to expatriates, China for FOREX help

ANI  |  London [United Kingdom] 

To stave off a potential foreign exchange crisis, is reportedly planning to raise hundreds of millions of dollars from Pakistani expatriates and wealthy Chinese investors.

According to a report, Islamabad's foreign currency stocks have reduced this month to about USD 11.4 billion, which is equivalent to about ten weeks of imports, and down from around USD 14.1 billion in December.

further states that falling remittances from Pakistani migrant workers abroad and rising imports and payments to Chinese companies for infrastructure as part of an ambitious, USD 60 billion China-Economic Corridor (CPEC) is primarily responsible for this drop in foreign exchange reserves.

needs to raise USD 17 billion to cover its debt repayments and current account deficit (CAD) this year. This warning was issued by the Bank in October last year.

"Our expatriates will be offered attractive rates, better than what they will receive elsewhere," The FT quoted an of the State Bank of Pakistan, as saying this week. He said Pakistan would seek to raise up to USD one billion from expatriates worldwide, but did not reveal terms of the offer.

A senior in said that other options include borrowing from Middle Eastern countries or from Chinese

Miftah Ismail, Pakistan's de facto minister, had told the FT that the country was also seeking to issue debt denominated in Renminbi for the first time.

Last year, had borrowed more than USD one billion from Chinese state-backed institutions as its worsened, triggering fears that Pakistan was becoming overly dependent on the support of

Pakistan is yet to decide on the amount it wants to raise.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 18:45 IST