ISLAMABAD: China Development Bank has approved a facility of $700 million for Pakistan, Federal Minister for Finance and Revenue Ishaq Dar announced on Wednesday.
The facility approved by the board of the China Development Bank will boost the country’s forex reserves.
“Formalities completed and Board of China Development Bank has approved the facility of US $ 700 million for Pakistan. This amount is expected to be received this week by State Bank of Pakistan which will shore up its forex reserves!” the finance minister said in a tweet.
Formalities completed and Board of China Development Bank has approved the facility of US $ 700 million for Pakistan. This amount is expected to be received this week by State Bank of Pakistan which will shore up its forex reserves!
— Ishaq Dar (@MIshaqDar50) February 22, 2023
Pakistan is stuck in a dire balance of payment crisis and needs to secure the $1 billion tranche under the $6.5 billion Extended Fund Facility from the International Monetary Fund (IMF).
One of the demands of the global lender was that Pakistan needs to secure additional external financing avenues.
Apart from this, the IMF is also demanding slapping additional power surcharges and hiking the policy rate from Pakistan.
