Pakistan receives $500m from China’s ICBC, Dar confirms
6 March 2023
Industrial and Commercial Bank of China Ltd on Friday approved a rollover of a $1.3 billion loan for cash-strapped Pakistan, which will help shore up its depleting foreign exchange reserves, Finance Minister Ishaq Dar said.
The facility will be disbursed in three instalments. The first one of $500 million has been received by the State Bank of Pakistan, Dar said in a tweet. “It will increase forex reserves,” he said.
The money, which Dar said has been repaid by Pakistan to the ICBC in recent months, is crucial for the country’s economy, which is facing a balance of payment crisis, with its central bank foreign exchange reserves dropping to levels barely able to cover three weeks of imports.
Earlier in the day, Dar had in a press conference, said Pakistan was expecting financing from ICBC.
Pakistan has already received a $700 million loan from China to help boost its forex reserves.
Dar said the total $2bn is in effect Pakistan borrowing back the debt repayments it has paid to Beijing for previously agreed loans.
He said Pakistan will need $5bn external financing to close its financing gap this fiscal year, which ends in June.
More external financing will be coming to Pakistan only after Islamabad signs a deal with the International Monetary Fund (IMF), which the minister said should be done by next week.
The lender has been negotiating the deal with Pakistan since early last month to clear its ninth review, which if approved by its board will issue over $1bn tranche of $6.5bn bailout agreed in 2019.
“We will, God willing, take this country out of this quagmire,” Dar said, dismissing concerns of a default risk.
Related
-
Gabon gets $3.2bn loan to build power stations, railway and factories
3 July 2025
-
UK government unveils solar roadmap, outlines steps to 47 GW by 2030
2 July 2025
-
Slovenia preparing hydrogen action plan until 2030
23 June 2025
-
India allocates $630m for 30 GWh of batteries
12 June 2025
-
Pakistan proposes 18% tax on foreign panels in wake of solar imports surge
12 June 2025
-
Serbia shelves plan for strategic partnership for 1 GW in wind farms
11 June 2025