China okays $700m for Pakistan, says Dar

Soon after the completion of all prior conditions set by the International Monetary Fund for the revival of the $7bn bailout programme, Finance Minister announced that the Board of China Development Bank (CDB) on Wednesday approved a $700 million credit facility for Pakistan hoping inflows from other multilateral lenders and friendly countries. Mr Dar said the amount expected to be received this week will shore up the State Bank of Pakistan’s (SBP) foreign exchange reserves which have dwindled to $3bn, not sufficient to even cover three weeks of controlled imports. Pakistan is required to build its forex reserves to a minimum of $10bn to cover the import bill of two months. Pakistan expects inflows from China, Saudi Arabia and UAE soon after the signing of the staff-level agreement. A well-placed source told Dawn that Pakistan and IMF will sign the staff-level agreement on Feb 28. This will be followed, according to the source, by the IMF executive board meeting expected in the first week of March.