Pakistan receives $300m from China

Islamabad: Pakistan on Friday received $300 million from China, which increased the country’s foreign exchange reserves.

The latest reports said that the Industrial and Commercial Bank of China (ICBC) provided the third and final disbursement of $300 million to the State Bank of Pakistan (SBP), bringing the total loan amount from the Chinese bank to $1.3 billion.

Earlier, Finance Minister Ishaq Dar tweeted that the SBP would receive the third and final disbursement of $300 million from the ICBC, which was earlier repaid by Pakistan from the approved facility of $1.3 billion. He added that this would strengthen the foreign exchange reserves of the country.

Out of Chinese Bank’s #ICBC approved facility of $1.3 billion (which was earlier repaid by Pakistan), State Bank of Pakistan would receive back third and last disbursement today in its account amounting to $ 300 million.
It will shore up forex reserves of Pakistan.
AlhamdoLilah!

— Ishaq Dar (@MIshaqDar50) April 14, 2023

Additionally, Dar also tweeted that the United Arab Emirates (UAE) has confirmed to the International Monetary Fund (IMF) that it would provide $1 billion in support to Pakistan, and the SBP is currently working on the necessary documentation to accept the deposit from the UAE authorities.

IMF program — 9th Review Update:

UAE authorities have confirmed to IMF for their bilateral support of US $ One billion to Pakistan.

State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities.

AlhamdoLilah!

— Ishaq Dar (@MIshaqDar50) April 14, 2023

This move is expected to pave the way for Pakistan to receive the delayed $1.1 billion IMF loan tranche to support its struggling economy.