Islamabad: In a major boost to the forex reserves of Pakistan, Finance Minister Ishaq Dar late on Friday confirmed that Pakistan had received $500 million from the Industrial Commercial Bank of China (ICBC).
Taking to Twitter, the financial czar said that the Chinese bank had agreed to rollover the $1.3 billion facility, which was paid by the cash-strapped South Asian country in recent months.
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 added.
Formalities completed & Chinese Bank, ICBC approved rollover of US$1.3 billion facility which has been repaid by Pakistan to ICBC in recent months. Facility will be disbursed in 3 instalments, first one of US$500 million has been received by SBP. It will increase forex reserves!
— Ishaq Dar (@MIshaqDar50) March 3, 2023
According to the State Bank of Pakistan (SBP), the country’s forex reserves shot up by $555.6 million towards the end of last month as China came to the rescue of its all-weather friend in the most needed time with a crucial refinancing.
According to data shared by the State Bank of Pakistan, during the week that ended on February 24, 2023, the SBP-held forex reserves shot up sharply by $555.6 million to reach $3.814 billion.
However, those held by commercial banks dropped marginally by $15 million to clock in at $5.453 billion.
During the period under review, the SBP received $700 million as the government of Pakistan commercial loan disbursement from China. However, after accounting for external debt repayments, the SBP reserves increased by $555.6 million
