Pak receives cash injection of USD 700 million from China

Cash starved Pakistan received a much-needed USD 700 million from all-weather ally China to help its ailing economy before the finalisation of talks with the IMF for financial assistance.

Ishaq Dar, Finance Minister who earlier this week announced Pakistan was expecting to get help from China, took to social media to confirm that the money had been transferred.

“Funds USD 700 million received today by State Bank of Pakistan from China Development Bank,” Dar tweeted.

Prime Minister Shehbaz Sharif to expressed gratitude to the “special friend” of Pakistan.

The cash assistance was provided even before the finalisation of negotiations with the IMF to resume a lifeline needed to avert default and added that talks with the fund would soon be successful.

Pakistan and the IMF have been holding virtual talks after the two sides held 10 days of intensive talks with an IMF delegation in Islamabad from January 31 to February 9, which failed to reach an agreement.

A critically low Pakistan’s foreign exchange reserves, of USD 2.9 billion a few weeks ago, have now risen closer to USD 4 billion.

They will get a further boost once the IMF releases USD 1.1 billion after the successful completion of talks.