Pakistan Receives $500 Mln From China

BUSINESS:As part of the $1.3 billion facility that approved by the Industrial and Commercial Bank of China (ICBC), Pakistan received $500 million in refinancing on Friday from China’s Finance Minister Ishaq Dar.

High inflation, declining forex reserves, a widening current account deficit, and a depreciating currency have all contributed to the country’s growing economic difficulties.

The finance czar made the announcement via Twitter: “Formalities completed and Chinese Bank, ICBC approved rollover of $1.3 billion facility which has repaid by Pakistan to ICBC in recent months.”

He stated that the facility would be distributed in three installments; the State Bank of Pakistan has already received the first installment, which is $500 million.

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“It will boost foreign exchange reserves!” Dar expanded.

The finance minister disclosed just hours before making his announcement that China renewed a facility under which Pakistan anticipated receiving an additional $500 million in the “next few days.”

Dar stated that the SBP’s foreign exchange reserves increased to $3.8 billion from $2.8 billion last month, highlighting the economic accomplishments of the PDM-led government. He maintained that during the current fiscal year, the government returned $6.5 billion in foreign debt.

Including the $1 billion in sukuk payments, Pakistan has made approximately $5.5 billion in payments. These include $2 billion to the China Development Bank and ICBC, as well as $3.5 billion to foreign banks, he stated.

The debt stock does not decrease when debt is typically rolled over. He stated, “We are decreasing debt stock.” Last night, formalities with ICBC were completed. This facility has been renewed, and we will receive the money back in three installments after we returned $1.3 billion to it.

“We returned $1.3 billion in three installments: $500 million, $500 million, and $300 million.” It will be returned to us in the same manner. In two to three days, $500 million will be given to Pakistan. It could reach us on Monday. In 10 days, we will receive an additional $500 million.