Cash-starved Pakistan receives another $500 million from Chinese Bank

ishaq Dar confirms the news in a tweet
<p>Ishaq Dar. PHOTO/FILE</p>

Ishaq Dar. PHOTO/FILE

Finance Minister Ishaq Dar said State Bank of Pakistan has received on Friday in its account from Chinese Bank ICBC US Dollars 500 million.

“It will shore up forex reserves of Pakistan,” Ishaq Dar said.

On March 16, 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.

Read Also: IMF puts damper on loan deal, sets new condition for Pakistan

It is pertinent to note that revival of the IMF loan program for Pakistan took a new turn, as the international lender has put forward a new condition before signing a staff-level agreement.

After allegedly fulfilling all prior conditions to unlock the next tranche of a billion dollars, Pakistan is faced with another obstacle.

SAMAA TV sources claimed that the IMF has sought a written assurance of financing from friendly countries, including the Kingdom of Saudi Arabia, Qatar and the United Arab Emirates (UAE) by June 30.

Finance Ministry officials said the written assurance must be provided by the executive directors of the respective friendly countries at the International Monetary Fund.

The Finance Ministry along with the Prime Minister Office has become active in obtaining the written assurance from the friendly countries.

The authorities expect to obtain the written assurance soon, the sources said.

Ishaq Dar

China

International Monetary Fund (IMF)

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