China approves $2.3B loan facility for Pakistan

Islamabad, consortium of Chinese banks ink loan facility agreement

By Aamir Latif

KARACHI, Pakistan (AA) - China has approved a $2.3 billion loan to prop up Pakistan's depleting foreign reserves.

The loan facility agreement was inked between Islamabad and a consortium of Chinese banks with cash inflow expected “within a couple of days,” Pakistan’s Finance Miftah Ismail said on Twitter on Wednesday.

"The Chinese consortium of banks has today signed the RMB 15 billion ($2.3 billion) loan facility agreement after it was signed by the Pakistani side yesterday (Tuesday). Inflow is expected within a couple of days. We thank the Chinese government for facilitating this transaction," Ismail said.

The Pakistani rupee closed at an all-time low of 211.93 against the US dollar after losing 0.21% in the interbank market on Wednesday.

Islamabad’s foreign exchange reserves currently stand at nearly $9 billion.

Foreign Minister Bilawal Bhutto Zardari thanked Beijing for the loan facility.

Kaynak: