Pakistan and China have agreed to a $700 million commercial loan, reviving prospects for a total of $2 billion in injections from the friendly country, a move that could temporarily stabilise the country’s extremely thin foreign currency reserves until IMF money began to flow in.
The development came days before Pakistan was scheduled to return another $300 million Chinese commercial loan. Details indicate that the International Monetary Fund and Ministry of Finance and Revenue officials had a virtual conference to announce the development (IMF).
The agreement for the $700 million loan between Pakistan and the China Development Bank was reached over the weekend. According to officials, the money is expected to be transferred this week.