The Pakistani government received a welcome boost to its foreign exchange reserves recently when the State Bank of Pakistan (SBP) received a $700 million deposit from the China Development Bank. Finance Minister Ishaq Dar made the announcement on Friday, citing the loan facility approved by the China Development Bank Board, and the funds have been successfully transferred.
The impact of the influx of cash on the country’s economy is expected to be significant, as Pakistan has been struggling to cover its high levels of external debt and has only been able to afford a few weeks’ worth of imports. The loan from the China Development Bank is therefore a lifeline for the cash-strapped government.
The China Development Bank is a state-funded and state-owned development finance institution that is responsible for raising funds for large-scale infrastructure projects. As a result of the loan, the foreign exchange reserves held by the State Bank of Pakistan have increased to $3.26 billion.
With the loan, Pakistan’s policymakers are now better equipped to secure inflows of foreign currency and the bailout program with the International Monetary Fund (IMF) may now be able to move forward.
In conclusion, the loan of $700 million from the China Development Bank has provided a much-needed boost to Pakistan’s foreign exchange reserves, offering a lifeline to the cash-strapped country. The loan was approved by the China Development Bank Board, and the funds have been transferred successfully. The increase in foreign exchange reserves and the ability to secure inflows of foreign currency has improved the country’s outlook in terms of paying off its debt and restoring financial equilibrium.
Key Points:
• The State Bank of Pakistan (SBP) recently received a $700 million loan from the China Development Bank.
• The loan is a lifeline for the cash-strapped country, which has been battling to pay off its high levels of external debt.
• The loan was approved by the China Development Bank Board, and the foreign exchange reserves held by the State Bank of Pakistan have increased to $3.26 billion.
• The increase in foreign exchange reserves and the ability to secure inflows of foreign currency has improved Pakistan’s outlook in terms of paying off its debt and restoring financial equilibrium.