ISLAMABAD: Formalities completed and the Board of China Development Bank has approved the facility of $700 million for Pakistan, said Finance Minister Ishaq Dar.

The finance minister announced through a tweet that “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.”

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Reuters adds: 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.

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. China is already Pakistan’s single largest creditor with its commercial banks holding about 30% of its external debt.

Copyright Business Recorder, 2023