Islamabad — Finance Minister Ishaq Dar said on Wednesday that the China Development Bank (CDB) board had approved a $700 million loan facility for Pakistan.
According to Twitter, the Finance Minister of the National Bank of Pakistan (SBP) will receive funds this week to underpin the country’s foreign exchange reserves.
Pakistan is in a serious balance of payments crisis and he needs to secure a $1 billion tranche under his $6.5 billion Expansion Fund Facility of the International Monetary Fund (IMF).
One of the demands of global lenders was that Pakistan had to secure additional external financing instruments.
Apart from that, the IMF is also calling for additional electricity surcharges and major interest rate hikes from Pakistan. The government is now in virtual talks with the International Monetary Fund (IMF) on an economic relief that is expected to bring in $1.2 billion in payments as well as unleash inflows from friendly countries and other multilateral institutions. .
Mr Dahl said earlier this year that the country’s foreign exchange reserves would be “better than we imagined” by the end of June.
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