China bank approves $700m facility
Photo: file
Federal Minister for Finance and Revenue Mohammad Ishaq Dar on Wednesday said that the board of China Development Bank (CDB) has approved a $700 million facility for Pakistan.
In a tweet, the minister said that the State Bank of Pakistan (SBP) was expected to receive the amount in the ongoing week, which would shore up Pakistan’s foreign currency reserves.
“Formalities have been completed and the board of China Development Bank has approved a facility of $700 million for Pakistan. This amount is expected to be received this week by the State Bank of Pakistan, which will shore up its forex reserves,” he tweeted.
The $700 million loan has revived prospects for total injection of $2 billion, an amount that may temporarily stabilise the thin foreign currency reserves, according to a news report.
The development comes days before Pakistan is scheduled to return a Chinese loan of $300 million. Finance Secretary Hamed Yaqoob Sheikh said that another rollover was expected within this week, in a veiled reference to loans being given by the Industrial and Commercial Bank of China.
Published in The Express Tribune, February 23rd, 2023.
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