China Development Bank approves US$ 700 million financing for Pakistan

China Development Bank has approved US$ 700 million in financing for Pakistan!

Finance Minister Ishaq Dar announced on Wednesday that the Board of China Development Bank has approved a $700 million facility for Pakistan that would boost the forex reserves.

In a message on his Twitter handle, Finance Minister Ishaq Dar said, “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 the State Bank of Pakistan which will shore up its forex reserves!”

According to the sources, this loan was in addition to other facilities that China has already extended to Pakistan.

According to official sources, two more commercial loans were expected to be re-financing including $500 million and $800 million.

Sources claim that Pakistan is eyeing to get re-financing of Chinese loans up to $2 billion by the end of February or the first week of March 2023. 

As reported, one of the demands made by the IMF was Pakistan needed to secure additional external financing avenues. 

Pakistan is currently stuck in a dire balance of payment crisis.

The needs to secure the $1 billion tranche under the $6.5 billion Extended Fund Facility from the International Monetary Fund (IMF).