Pakistan receives another tranche of $500 million from China

KARACHI – State Bank of Pakistan has received another tranche of $500 million from Industrial and Commercial Bank of China.

Finance Minister Ishaq Dar in a tweet said that it will shore up foreign exchange reserves of Pakistan which is facing dire shortage of dollars. The amount has been received as part of Industrial and Commercial Bank of China’s approved loan worth $1.3 billion.

Earlier this month, Pakistan sealed a $1.3 billion rollover from China at a crucial time when the South Asian country left with less than one month import cover.  

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.