China lends Pakistan further $700 mln. to shore up FX reserves
Pakistan will this week receive a new $700 million loan from China to help shore up its foreign exchange reserves, the country’s finance minister said on Wednesday, in another step to help the South Asian nation recover from an economic crisis.
The credit facility, made through the state-owned China Development Bank will boost Pakistan’s forex reserves by about 20% and comes as the country is thrashing out a deal with the International Monetary Fund (IMF) to unlock funds from a $6.5 billion bailout. “This amount is expected to be received this week by State Bank of Pakistan which will shore up its forex reserves,” Finance Minister Ishaq Dar said on Twitter.
A finance ministry official said the loan was in addition to other facilities that China has already extended to Pakistan. The money could come as early as Thursday, he added.
China Development Bank did not respond to a faxed request for comment.
