The State Bank of Pakistan (SBP) on Friday received $700 million from the China Development Bank, Finance Minister Ishaq Dar announced, a development that gives a much-needed boost to the country’s foreign exchange reserves.
Earlier this week, Dar said the China Development Bank Board had approved the payment and the amount was expected to be received this week.
The China Development Bank is a state-funded and state-owned development finance institution responsible for raising funds for major infrastructure projects.
Foreign reserves held by the State Bank of Pakistan (SBP) rose by $66 million to $3.26 billion, data released on Thursday showed.
The level of reserves is less than a month’s worth of imports, leaving Pakistan’s policymakers scrambling to secure inflows at a time when the country’s bailout program with the International Monetary Fund (IMF) remains stalled.
An IMF delegation left Pakistan early without a staff-level agreement. However, Dar reported the receipt of the Memorandum on Economic and Financial Policies (MEFP) with other officials in Islamabad, reiterating that talks with the lender were ongoing.
Meanwhile, Pakistan has moved to implement several preconditions for reviving the program, including hastily passing a “mini-budget” that levied nearly Rs170 billion in taxes earlier this week.