Chinese bank approves $700m loan for Pakistan

ISLAMABAD: Finance Minister Ishaq Dar announced on Wednesday that the Board of the China Development Bank (CDB) has approved a loan facility of $700 million for Pakistan, ARY News reported.

“This amount is expected to be received this week by State Bank of Pakistan which will shore up its forex reserves” tweeted Finance Minister Ishaq Dar.

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 was eyeing to reach an agreement with the International Monetary Fund (IMF) that would not only lead to a disbursement of $1.2bn but also unlock inflows from friendly countries.

The International Monetary Fund (IMF) and Pakistan moved closer to the revival of $7 billion Extended Fund Facility (EFF) as the lender responded to the Memorandum of Economic and Financial Policies (MEFP) draft.

The global lender has responded to the Memorandum of Economic and Financial Policies (MEFP) draft – sent by officials of Ministry of Finance and Revenue.

Sources have revealed that the staff-level agreement between the fund and the government is expected next week.