Pakistan on Wednesday signed a $2.3 billion (RMB 15 billion) loan facility agreement with a consortium of banks from China, giving a boost to the country’s dwindling foreign exchange reserves.
In a message posted on Twitter, Finance Minister Miftah Ismail said that the inflow is expected within a couple of days.
The Chinese consortium of banks has today signed the RMB 15 billion (~$2.3 billion) loan facility agreement after it was signed by the Pakistani side yesterday. Inflow is expected within a couple of days. We thank the Chinese government for facilitating this transaction.
— Miftah Ismail (@MiftahIsmail) June 22, 2022
“We thank the Chinese government for facilitating this transaction,” the minister added.
The announcement comes merely hours after a breakthrough was reported in talks with the IMF over the budgetary proposals for the upcoming fiscal year.
Foreign exchange reserves held by the State Bank of Pakistan (SBP) dipped below $9 billion on June 10. The central bank reserves are currently at their lowest level since November 22, 2019.
