High level delegation to visit China this week.

Byline: Imran Ali Kundi

ISLAMABAD -- Pakistan's high level delegation would visit China during current week to work out the modalities for immediate market access for Pakistan's exports as well as balance of payments support with the Chinese authorities.

China has apparently refused to give immediate bailout package to Pakistan during recent visit of Prime Minister Imran Khan to Beijing. Pakistan was looking to get package as recently agreed with the Saudi Arabia. Saudi Arabia would place $3 billion cash deposits in the account of State Bank of Pakistan (SBP). In addition, it would also provide a one-year deferred payment facility for the import of oil, worth up to $3 billion.

Pakistan wants that China should deposit some cash in the account of SBP for some time to enhance the country's foreign exchange reserves. 'During the week ending 26 October 2018, SBP's reserves decreased by $48 million to $7,777 million, due to external debt servicing and other official payments,' the SBP said in a statement. The reserves would continue to decline in the current month due to massive repayment against previous loans. In November 2018, the government will have to repay $572 million as principal and $146 million as interest payment on loans.

The government is optimistic that China would agree to keep cash in Pakistan's central bank account. This would be 'stop gas financing' arrangement before the IMF programme. The IMF programme will require six to eight weeks for approval after things settle in the talks that would start from today (November 7).

During the recent visit of Prime Minister Khan to China, the two sides held discussions on immediate market access for Pakistan's exports as well as balance of payments support. The top Chinese...