Ishaq Dar, the federal minister for finance and revenue, reported on Wednesday that the Board of the China Development Bank (CDB) has given its approval for the disbursement of $700 million to Pakistan.
“Formalities completed and Board of China Development Bank has approved the facility of $700 million for Pakistan,” Dar announced in a post on Twitter. “This amount is expected to be received this week by the State Bank of Pakistan (SBP), which will shore up its forex reserves!” added Dar.
A state-owned and funded development finance agency called the China Development Bank (CDB) is in charge of generating money for significant infrastructure projects, who has approved the loan of $700 million for Pakistan.
US officials express alarm over Pakistan’s debt to China.
According to data released last week, the SBP’s foreign exchange reserves climbed by $276 million to $3.19 billion at the time of the development.
The nation’s total liquid foreign reserves were $8.7 billion. There were $5.51 billion in net foreign reserves held by commercial banks.
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Foreign exchange reserves had decreased by $170 million to just $2.92 billion the previous week.
The central bank’s reserves, which were approximately $18 billion at the beginning of 2022 but have significantly decreased since, highlight how critical it is for Pakistan to finish the upcoming assessment of its IMF programme.
Pakistan is still in discussions with the IMF on restarting the Extended Fund Facility (EFF) programme, which has been put on hold.
