Islamabad: Cash-strapped Pakistan has received a rollover of $2 billion in deposits for a period of one year from its all-weather ally China to help Islamabad get a much-required bailout from the IMF to stabilise its economy, a media report said. One of the requirements of the IMF in order to meet its external financing needs in order to proceed with signing the staff-level agreement is the rollover, which is essentially not a loan but rather a financial deposit to be held at Pakistan's central bank for a period of one year, according to media reports. Finance minister Ishaq Dar confirmed the development. “Yes,” Dar was quoted as saying in a brief response when asked about getting a rollover of $2 billion SAFE (State Administration of Foreign Exchange) deposits from China.
Since February, Pakistan and the IMF have been attempting to reach an agreement on the release of a $1 billion loan, but so far the negotiations have stalled because of the donor's stringent requirements. After China refinanced $500 million last week, Pakistan is frantically trying to raise its estimated $4. 8 billion in foreign exchange reserves.