China Development Bank (CDB) approved a loan of $700 million for Pakistan.
In a boost to the forex reserves, Finance Minister Ishaq Dar announced on Wednesday that the Board of China Development Bank has approved a $700 million facility for Pakistan.
Ishaq Dar first inclination after becoming finance minister in September was to look for financial support from allies in order to evade the strict criteria of the IMF.
The minister stated in November that he had obtained a $13 billion bailout from China and Saudi Arabia with the help of $5.7 billion in new loans. Dar was certain that the funds would arrive before to the IMF programme restart.
With time, it became apparent that Islamabad previous partners would not provide additional funding without the nation first accepting the Fund requirements. When it came time to negotiate the arrangement, Pakistan had to invite the IMF mission.
The loan, he insisted, will shore up Pakistan foreign exchange reserves.
On the other side, Islamabad has agreed to execute the IMF Memorandum of Economic and Financial Policy (MEFP).
The staff-level agreement between the fund and the government is anticipated to be finalized next week, according to sources.
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