Pakistan gets $1.3 billion loan from Chinese banks

KARACHI: The State Bank of Pakistan (SBP) has received $1.3 billion as loan disbursements from Chinese banks this week.

“SBP has received $1.3 billion as GOP loan disbursements from Chinese Banks this week. This brings the total amount of official inflows received from 23rd June 2020 to around $3 billion,” the bank said.

SBP has received $1.3 billion as GOP loan disbursements from Chinese Banks this week. This brings the total amount of official inflows received since 23rd June 2020 to around $3 billion.

— SBP (@StateBank_Pak) June 30, 2020

On June 24, the SBP had received $1bn — $500mn each from World Bank (WB) and Asian Development Bank (ADB) to facilitate the country during its fight against the COVID-19 outbreak.

On May 20, the ADB had approved a loan worth $500 million to Pakistan to help the country’s COVID-19 health and economic response and “protect poor” citizens.

The development — part of the COVID-19 Active Response and Expenditure Support (CARES) Programme — took place following a meeting of the ADB’s Board of Directors in Philippines’ capital, Manila.

In its statement, the bank had said the loan would support Pakistan to “deliver social protection programs to the poor and vulnerable, expand health sector capabilities, and deliver a pro-poor fiscal stimulus to boost growth and create jobs as the country fights the novel coronavirus outbreak”.

The country’s current account turned into a surplus of $13 million on May 20 against a deficit of $530 million in April 20 and $1,004 million on May 19, the central bank had announced on June 24.

“Pakistan’s Current Account turned into a surplus of $13 million May 20 against a deficit of $530 million on April 20 and $1004 million on May 19,” stated a tweet from the SBP.

“On a cumulative basis, the CAD has narrowed by 73.6% to $3.3 billion during Jul-May FY20 from $12.5 billion during the same period last year.”