International Desk: The Industrial and Commercial Bank of China (ICBC) has approved a new loan of 1.3 billion dollars for economically distressed Pakistan. They are said to have approved the loan on Friday. Pakistan’s Finance Minister Ishaq Dar said that this loan will help increase the foreign exchange reserves of the South Asian country.
Pakistan’s economy has practically come to a standstill. The foreign exchange reserves are at their lowest. China has come forward in this critical situation for the country. Beijing has already provided $500 million in emergency aid to Pakistan, which is on the brink of bankruptcy. Pakistan’s Finance Minister Ishaq Dar confirmed the receipt of loan assistance on Twitter. This loan will come in three installments, of which the Central Bank of Pakistan has already received the first installment of $500 million, he said in a tweet. It will increase foreign exchange reserves, said Dar. He said that they are getting back the loan that Pakistan had paid to ICBC in recent months. According to the news, Finance Minister Ishaq Dar said that China’s Industrial and Commercial Bank of China Limited (ICBC) has approved a loan of 1.3 billion or 1.3 billion US dollars to provide assistance to Pakistan. The minister also mentioned that it would help boost his country’s dwindling foreign exchange reserves.
Pakistan’s central bank, which was struggling to maintain a balance of payments, had reached a level where its foreign exchange reserves made it impossible to meet even three weeks’ worth of import bills. China has already loaned Islamabad $700 million as part of its aid to boost the country’s foreign exchange reserves. Dar said, China is lending 200 million dollars more than what they paid as per the previous loan agreement. Pakistan needs $5 billion from outside to meet the deficit for the fiscal year ending in June, he said. Islamabad could get more money from outside if it could reach an agreement with the International Monetary Fund (IMF). Darer also commented that the agreement with the IMF should be done within the next week. If Allah wills, we can bring the country out of this mire,” said the Pakistani minister, dismissing the possibility of default.
He also said, ‘This financial assistance will be given in three phases. 500 million, or 500 million dollars, have been given in the first phase. Earlier, Dar told the press conference that Pakistan is expecting to get loan assistance from ICBC. However, Pakistan has already received loan assistance of 700 million or 700 million dollars from China to increase its foreign exchange reserves. He also said that Pakistan would need $5 billion in external debt to meet the deficit in the fiscal year ending in June. He also said that Pakistan will receive more external credit support only after Islamabad signs an agreement with the International Monetary Fund (IMF). Dismissing the risk of bankruptcy, he also said, “Of course we will bring the country out of this crisis.”
