China bank approves $700M: Finance Minister Ishaq Dar reported on Wednesday that the Board of China Development Bank has approved a $700 million facility for Pakistan, adding to the country’s foreign exchange reserves.
Finance Minister Dar tweeted that they had completed the processes, and the State Bank of Pakistan would receive the money this week, bolstering its foreign exchange reserves.
Sources had anticipated the financing because they had said that the money would arrive.
According to The News, a top government official stated that they were hopeful that they could refinance all Chinese matured loans shortly about the topic of re-financing commercial loans from Chinese banks.
But, official sources anticipated that two other commercial loans, totaling $500 million and $800 million, would be refinanced.
Pakistan hopes to restructure its Chinese debt totaling $2 billion by the end of February or the first week of March 2023.
Pakistan is in a severe balance of payments crisis and must obtain the $1 billion tranche from the IMF as part of the $6.5 billion Extended Financial Facility (IMF).
Furthermore, the international lender made it a condition that Pakistan finds new sources of outside funding.
In addition, the IMF is pressing Pakistan to raise its policy rate and apply new power levies.