SBP to receive $300m from Chinese bank today, says Dar

The last tranche is part of $1.3 billion loan Pakistan has already repaid to ICBC

LAHORE (Web Desk) - Finance and Revenue Minister Ishaq Dar on Friday said the State Bank of Pakistan (SBP) will receive third and last disbursement of $300 million from China's Industrial and Commercial Bank of China (ICBC).

Taking to Twitter, he said ICBC would release last tranche of $300m from $1.3 billion loan facility (which was earlier repaid by Pakistan).

Th minister said the latest transaction would shore up the foreign exchange reserves of the country.

"Out of Chinese Bank ICBC's approved facility of $1.3 billion (which was earlier repaid by Pakistan), State Bank of Pakistan would receive back third and last disbursement today in its account amounting to $ 300 million. It will shore up forex reserves of Pakistan" Dar said in the tweet.

Out of Chinese Bank’s #ICBC approved facility of $1.3 billion (which was earlier repaid by Pakistan), State Bank of Pakistan would receive back third and last disbursement today in its account amounting to $ 300 million. It will shore up forex reserves of Pakistan. AlhamdoLilah!

— Ishaq Dar (@MIshaqDar50) April 14, 2023

On March 3, the ICBC had approved a rollover of a $1.3bn loan for Pakistan and made the first payment of $500m the same day. The second one also worth $500m was made on March 17.

Today’s development is expected to lead to the much-delayed staff-level agreement (SLA) with the Fund and unlock multilateral disbursements.