(MANEND NEWS): The State Bank of Pakistan (SBP) has officially confirmed the receipt of the funds, which have already been deposited into the designated account. This infusion of funds is expected to provide a much-needed boost to Pakistan’s economy, supporting various sectors and facilitating economic growth. Last week, Pakistan took a significant step by making an advance payment to the Chinese Development Bank.
The advance payment served as a precursor to the full disbursement of the $1 billion loan.
SBP spokesperson said that the received amount of $1 billion from China is specifically classified as a commercial loan, meaning that the funds are intended for commercial purposes and will be utilised strategically to support various developmental projects and initiatives in Pakistan.
The payment was received as Finance Minister Ishaq Dar announced the expected roll over. He further mentioned that the government is also in talks with the Bank of China for an amount of $300 million.
Earlier this year, the country’s central bank received $500 million from the Commercial Bank of China as part of a $1.3 billion rollover facility. Pakistan’s strategic partner China continued to help crisis-hit country meet crucial debt repayments by providing fresh funds, a move which help South Asian country avert debt default as local governments relied on global lenders like IMF and friendly nations China to finance its budget deficit.
The federal government is also making several changes in tax collection but fiercely resisted some of the measures demanded by the IMF, like cuts on subsidies and amnesties.