Pakistan receives a $700 million loan approved by China Development Bank.

Pakistan has been granted a $700 million refinancing loan from the China Development Bank (CBD).

Ishaq Dar, the minister of finance, tweeted a confirmation of the news. “Formalities finished, and the Board of the China Development Bank has approved the credit of US$700,000,000 for Pakistan,” he declared. The State Bank of Pakistan is anticipated to receive this sum this week, which will strengthen its foreign exchange reserves.

The change coincides with the central bank’s foreign exchange reserves being recorded at $3.192 billion, up $276 million from $2.916 billion on February 3 but still at their lowest level since February 2014. The reserve count is anticipated to show a little increase in the FX review of next week as a result of an agreement being in place to refinance a loan of $700 million from the China Development Bank (CDB) for Pakistan.

In order to advance towards the conclusion of a Staff-Level Agreement, Pakistani authorities and the International Monetary Fund (IMF) continue their virtual negotiations (SLA). “Virtual discussions are still going on, and things are progressing. Speaking to the media, Minister of State for Finance and Revenue Aisha Ghaus Pasha expressed her optimism about the situation.

It is important to note that Pakistan needs guarantees for further loans from Saudi Arabia and China in order to receive the IMF bailout. To comply with the strict IMF standards, the administration has already taken a number of actions. Among them include allowing the market-determined exchange rate, enacting additional taxes, and increasing energy and gas prices.

Pakistan has worked hard to convince the IMF, and now it is hoping that its friends will come to its rescue.

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