In a much-needed boost to the country’s foreign exchange reserves, the State Bank of Pakistan (SBP) has received $700 million from China Development Bank, Finance Minister Ishaq Dar announced on Friday.
The $700 million deposit from China will operate as a lifeline for the cash-strapped country, which has been battling to pay off its exceptionally high levels of external debt and only has enough dollars to cover fewer than three weeks’ worth of imports.
Earlier this week, Federal Minister for Revenue Senator Ishaq Dar announced that the board of the China Development Bank approved a loan facility for Pakistan worth $700 million, and the formalities in this regard have been completed.
The China Development Bank is a state-funded and state-owned development finance institution responsible for raising funds for large-scale infrastructure projects.
AlhamdoLilah!
Funds $ 700 million received today by State Bank of Pakistan from China Development Bank. https://t.co/7eLwWkSFgO
— Ishaq Dar (@MIshaqDar50) February 24, 2023
Foreign exchange reserves held by the State Bank of Pakistan (SBP) increased $66 million to $3.26 billion, data released on Thursday showed.
The level of reserves is at less than one month of import cover, leaving Pakistan’s policymakers scrambling to secure inflows at a time when the country’s bailout program with the International Monetary Fund (IMF) remains stalled.
