Pak eyes expatriates, China bonds as foreign reserves dip: Report

Pakistan government has been pushed into debt crisis due to payments to Chinese companies for infrastructure projects under the China-Pakistan Economic Corridor(CPEC), a report in a London newspaper said.

The government has also has been hit by falling remittances from Pakistani migrant workers abroad. In order to raise funds, the Pak government is targeting expatriates living abroad including borrowing from Middle Eastern countries or from Chinese commercial banks, a London newspaper reported.

Pakistan's foreign reserves have hit a low this month to $11.4 billion down from $14.1 billion in December.

The World Bank had told Pakistan last year that it needed to raise $17 billion to cover its debt repayments and current account deficit this year.

Last year, Islamabad had reportedly borrowed more than $1 billion from Chinese state-backed institutions as its current account deficit worsened signalling Pak's dependence on the Communist state.

The London newspaper said Pakistan hopes to raiseupto $1billion from expatriates worldwide. Pakistan has allowed its rupee to depreciate nearly 10 per cent against the dollar in recent months in order to hold off the current account deficit,increase the value of foreign remittances and balance out imports in the country.

The report said Pakistan's de facto finance minister Miftah Ismail isseeking to issue debt denominated in Renminbi - the official currency of China- for the first time.

As the country prepares to elect a new prime minister in July analysts say it could become a huge election issue with very little chance of Pak officials being able to raise forex reserves in the next three months.