Chinese Bank Lends $700 Million To Cash-Strapped Pakistan
Pakistani Finance Minister Ishaq Dar on Friday said that the State Bank of Pakistan (SBP) had received $700 million from the China Development Bank (CDB) in a much-needed boost to forex reserves as the country grapples with a worsening economic crisis. Earlier this month, the country’s foreign exchange reserves slipped to an alarming level of below $3 billion for the first time in nine years, reducing import capacity to slightly over two weeks. As the government seeks to revive the International Monetary Fund (IMF) programme, Pakistan has sought to secure assurances from Saudi Arabia and China for more loans. It desperately needs the IMF to release an overdue tranche of $1.1 billion from an existing bailout programme. With its debt-to-GDP ratio already in the 70% danger zone and between 40% and 50% of the government revenues earmarked for interest payments alone this year, it will soon need more, reports The Express Tribune.