Pakistan, Chinese consortium of banks sign $2.3b loan agreement

ISLAMABAD: Pakistan has signed $2.3 billion loan facility agreement with a Chinese consortium of banks, ARY News reported on Wednesday.

The development was confirmed by Finance Minister Miftah Ismail on his official Twitter handle. He said the agreement was signed on Tuesday between Pakistan and the Consortium of Banks, revealing that the inflows are expected within a couple of days.

The Chinese consortium of banks has today signed the RMB 15 billion (~$2.3 billion) loan facility agreement after it was signed by the Pakistani side yesterday. Inflow is expected within a couple of days. We thank the Chinese government for facilitating this transaction.

— Miftah Ismail (@MiftahIsmail) June 22, 2022

“We thank the Chinese government for facilitating this transaction,” he said.

Read more: PAKISTAN, IMF ‘REACH DEAL’ FOR RELEASE OF US$1 BN TRANCHE

Earlier, Pakistan and International Monetary Fund (IMF) reached a deal for the release of a US$1 billion tranche after the latter gave its nod to the budgetary adjustments for fiscal year 2022-23.

According to officials of the finance ministry, the Fund has agreed to the budgetary estimates set for the next fiscal year and the economic policies of the country.

“The IMF will soon release a handout confirming the staff level agreement between the two sides,” they said.