Cash-starved Pakistan receives USD 700 million from China

Pakistan and the IMF have been holding virtual talks after the two sides held 10 days of intensive talks with an IMF delegation in Islamabad from January 31 to February 9, which failed to reach an agreement.

Pakistan on Friday received a much-needed cash injection of USD 700 million from all-weather ally China to help its ailing economy before the finalisation of talks with the IMF for financial assistance.

Finance Minister Ishaq Dar, who earlier this week announced Pakistan was expecting to get help from China, took to social media to confirm that the money had been transferred.

"Funds USD 700 million received today by State Bank of Pakistan from China Development Bank," Dar tweeted.

It prompted Prime Minister Shehbaz Sharif to express gratitude to the "special friend" of Pakistan.

"There is an allied country of Pakistan, we were all thinking that they were waiting for the IMF agreement and then they would play their part but that allied nation a few days ago conveyed to us that 'we are giving you [this financial help] straight away', and these things can never be forgotten," he said while addressing a security meeting.

He said the assistance was provided even before the finalisation of negotiations with the IMF to resume a lifeline needed to avert default and added that talks with the fund would soon be successful.

Pakistan and the IMF have been holding virtual talks after the two sides held 10 days of intensive talks with an IMF delegation in Islamabad from January 31 to February 9, which failed to reach an agreement.

Pakistan's foreign exchange reserves, which fell to a critically low level of USD 2.9 billion a few weeks ago, have now risen closer to USD 4 billion.

They will get a further boost once the IMF releases USD 1.1 billion after the successful completion of talks.