SBP arranging $1.8bn to repay China

KARACHI: The financial market dealing with foreign exchange is tense on reports about the expected higher dollar outflows. Sources in the financial sector not willing to be quoted said the State Bank of Pakistan (SBP) is currently burdened with arranging $1.8 billion for repayment of a Chinese loan due in March. “The Ministry of Finance has yet not provided local currency equivalent to $1.8bn to the State Bank for making payment to China,” said the informed sources in the finance ministry. Despite higher outflows of profits and dividends on foreign investments during the first seven months of the current fiscal year, the stuck-up amount is more than what had been repatriated.