China-to-Pakistan Refinancing Plan Will Pay Out $2.3 Billion
China has agreed to refinance Pakistan by making a multi-billion dollar payment, according to recent statements from Pakistan’s Federal Minister of Finance, Miftah Ismail. The deal is the latest step in Pakistan’s attempts to avoid economic collapse.
China and Pakistan Agree to Refinancing Plan
Ismail says that China has agreed to the terms and conditions of a refinancing plan that will involve a transaction of 15 billion renminbi—equivalent to $2.3 billion or 2.1 billion euros.
It is unclear whether the transaction has been carried out or is still pending. “Inflow is expected shortly after some routine approvals from both sides,” Ismail wrote on Twitter on Thursday, June 2.
Ismail said that the deal will “help shore up [Pakistan’s] foreign exchange reserves.”
The country’s forex reserves have been under harsh pressure recently and have rapidly declined in value. In fact, the State Bank of Pakistan recently said that the value of the country’s reserves fell by $190 million in the first week of May to reach a value of $10.3 billion.
That trend will make it necessary for the nation to seek wealth from other sources.
Pakistan’s Economy Is In Crisis
China’s refinancing plan is just one factor in Pakistan’s economic situation. The country is largely reliant on foreign loans, an economic opportunity that seems to be growing scarce.
Data from the Ministry of Economic Affairs shows that Pakistan received a mere $248 million of foreign loans in April, including $100 million of oil on deferred payments from Saudi Arabia.
Pakistan is also seeking a $6 billion loan from the International Monetary Fund (IMF). Though that loan was agreed upon years ago and has now been partially paid out, its future is uncertain. Funding was paused in April as the IMF demanded that Pakistan form a new government.
These factors together bode poorly for the country. Pakistan’s economy is in crisis and some estimates suggest that it will need $36 billion in order to avoid a collapse.
The country’s national currency, the Pakistani rupee, is also declining rapidly in value. It fell to a historic low of 200 rupees to the dollar this May.
With few positive prospects on the horizon, the rupee will likely continue to be an undesirable investment among forex investors—and certainly one that carries a high level of risk.
We make cross-border banking easy, affordable, and secure. Choosing Payset for your multi-currency account means choosing personal service, advanced security, and modern convenience.
Frequently asked questions
What is a multi-currency account/virtual IBAN?
A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.
You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.
A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.
- Funds can be deposited and withdrawn from the account for a small fee.
- Account holders can send and receive money with other Payset users for free.
- Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS.
- Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
- We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days
Are there limits on the amount of money I can send and receive?
No, there are no transaction limits on Payset multi-currency accounts.
However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.
How is Payset regulated?
Payset is regulated as an authorized Electronic Money Institution by the UK Financial Conduct Authority. Our activities are also regulated by the Payment Services Regulation 2017 and the Electronic Money Regulation 2011 (SI 2011/99).
How do I add money to my account?
How do I send money from my account?
Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.
Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.
Types of Multi-Currency Accounts
Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.
