Pakistan receives $500mn financing from Chinese bank

ISLAMABAD: Pakistan has received $500 million from the Industrial and Commercial Bank of China Ltd (ICBC), Federal Minister for Finance and Revenue Ishaq Dar confirmed late Friday.

The friendly country has extended the tranche after Islamabad fulfilled almost all the tough conditions for the revival of the IMF loan programme.

Taking to Twitter, the finance minister announced that the Chinese Industrial and Commercial Bank of China Ltd (ICBC) has completed all formalities and approved the rollover of $1.3 billion facility that Pakistan repaid in recent months.

“The facility will be disbursed in three instalments. The first one of $500 million has been received by Pakistan’s central bank,” Dar said in a tweet.

Formalities completed & Chinese Bank, ICBC approved rollover of US$1.3 billion facility which has been repaid by Pakistan to ICBC in recent months. Facility will be disbursed in 3 instalments, first one of US$500 million has been received by SBP. It will increase forex reserves!

— Ishaq Dar (@MIshaqDar50) March 3, 2023

“It will increase forex reserves,” he said.

Earlier, Dar had in a press conference, said Pakistan was expecting financing from ICBC.

Addressing the presser, the finance minister refuted resignation and financial emergency rumours. He went on to say that the former prime minister Imran Khan’s government has ruined the economy.

Ishaq Dar said that despite PTI claims that the country is on the verge of default, the PDM government have neither let the country go default nor it will default in future.

It is pertinent to mention here that a staff-level agreement with Pakistan on the ninth review for a $6 billion loan facility that paves the way for the release of the much-awaited $1.17bn is facing delay despite Islamabad accepting the majority of IMF’s conditions.

Sources privy to the development said the staff-level agreement with the IMF is now likely to be signed in the month of March.