Pakistan receives $500 million from Chinese Bank, Ishaq Dar confirms

The State Bank of Pakistan (SBP) Friday received $500 million from the Industrial and Commercial Bank of China (ICBC).

Finance Minister Ishaq Dar announced on Twitter that the Chinese bank has approved the rollover of the $1.3 billion facility which has been repaid by Pakistan to ICBC in recent months.

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

Finance Minister Ishaq Dar on Friday said that Pakistan was expecting $1.3 billion in financing from the Industrial and Commercial Bank of China Ltd (ICBC) in the coming days to help shore up its foreign exchange reserves.

Addressing a press conference on the country’s prevailing economic situation in Islamabad, Dar said he was doing the press conference to clear “ambiguity” amid the current scenario.

“All our formalities with the ICBC are complete as of last night. We returned them $1.3bn in the last few months … they are giving it back and have renewed this facility,” Dar said, adding that it was possible that $500 million in the next few days by Monday or Tuesday with a further $500m within 10 days.

He said all documentation for the process was complete.