KARACHI – Pakistan’s foreign exchange reserves held by the central bank rose by over $4 billion as the crisis-hit country as Pakistan seals a $1.3 billion rollover from Industrial and Commercial Bank of China.
Amid the delay from IMF, the South Asian country received $500 million from the Industrial and Commercial Bank of China (ICBC) as the first tranche.
The country of over 220million, which is a $350 billion economy, is facing a massive economic meltdown, with a balance of payment crisis and depleting forex reserves. The country is looking for external financing inflows from International Monetary Fund (IMF) and friendly nations.
On Friday, Finance Minister Ishaq Dar confirmed “Formalities completed [and] Chinese Bank, ICBC approved rollover of $1.3 billion facility which has been repaid by Pakistan to ICBC in recent months”.
Formalities completed & Chinese Bank, ICBC approved rollover of US$1.3 billion facility which has been repaid by Pakistan to ICBC in recent months. Facility will be disbursed in 3 instalments, first one of US$500 million has been received by SBP. It will increase forex reserves!
— Ishaq Dar (@MIshaqDar50) March 3, 2023
PML-N stalwart said that the facility would be disbursed in three installments; the first one of $500 million has been received by the State Bank of Pakistan.
The forex reserves held by SBP were at $3.8 billion in late February 2023, not enough to cover a month of imports.
Lately, the country’s finance chief highlights the incumbent government’s economic achievements, saying foreign exchange reserves climbed.
Pakistan may get 1.3 billion in financing from Chinese bank in coming days
In a statement, Dar said “Debt is usually rolled over but the debt stock does not reduce. We are reducing debt stock… Formalities with ICBC were completed last night. We returned $1.3 billion to it and this facility has been renewed and we will receive the amount back in three tranches.”
