[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Ishaq Dar, Pakistan’s finance minister, reported on Wednesday that the board of the China Development Bank (CDB) has authorised a $700 million loan for Pakistan.
The nation’s foreign exchange reserves alarmingly fell below $3 billion earlier this month for the first time in nine years, cutting the country’s ability to import goods to little over two weeks.
Pakistan has sought assurances from Saudi Arabia and China for further funds as the government works to restart the International Monetary Fund (IMF) programme.
When Ishaq Dar took over as finance minister in September, his first preference was to avoid IMF’s tough conditions by seeking financial assistance from friendly countries.
In November, the minister claimed to have secured a $13 billion bailout from China and Saudi Arabia with $5.7 billion in fresh loans. Dar was confident that the cash would come before the IMF programme revival.
However, it became clear with time that Islamabad’s old allies refused to dole out more cash without the country first agreeing to the Fund’s conditions. That was when Pakistan had to invite the IMF mission to negotiate the deal.
The country is now hoping that its friends would come to its rescue as it has done all the hard yards to convince the IMF.
Dar took to Twitter to announce that CDB has decided to lend Pakistan its support.
“Formalities completed,” announced the financial czar, adding that $700 million was expected to reach the State Bank of Pakistan (SBP) by this week.
The loan, he insisted, will “shore up” Pakistan’s foreign exchange reserves.
Islamabad, on the other hand, has consented to adopt the Memorandum of Economic and Financial Policy (MEFP), which includes IMF-recommended policy changes.
The staff-level agreement between the fund and the government is anticipated to be finalised next week, according to sources.[/vc_column_text][/vc_column][/vc_row]
