Pakistan has received a $500 million loan tranche from China’s ICBC Bank to bolster its dwindling foreign exchange reserves as the government battles an ongoing economic crisis.
Finance Minister Ishaq Dar acknowledged that the State Bank of Pakistan had received $500 million from the Chinese Industrial and Commercial Bank of China Ltd in a tweet posted on Friday evening (ICBC).
“State Bank of Pakistan has received today in its account from Chinese Bank ICBC US $ 500 million. It will shore up the forex reserves of Pakistan. AlhamdoLilah!” Isaq Dar Tweeted
Documentation for the most recent transfer was finalized earlier this week as part of a US$1.3b rollover facility from China’s ICBC. It is the second $500 million transfer to Pakistan.
“Out of Chinese ICBC’s approved rollover facility of US$1.3 billion (which was earlier repaid by Pakistan to ICBC in recent months), documentation for second disbursement of US$500 million has been completed by Finance Ministry for release of funds to the State Bank of Pakistan!” Dar further added
The first installment of $500 million from the ICBC was delivered to Pakistan’s central bank earlier this month as part of the ICBC’s efforts to assist Pakistan in avoiding a default on its foreign debt during the current financial crisis.
As a result of Islamabad’s near-complete fulfillment of the stringent requirements necessary for the revival of the IMF loan program, China had agreed to extend the tranche, with the government claiming it would soon reach an agreement with the international lending institution at the staff level.
According to his announcement, the $1.3b rollover facility, which Dar stated would be paid out in three installments, was approved earlier this month.