Pakistan receives $1.3 billion loan from Chinese banks

KARACHI: The State Bank of Pakistan (SBP) got another boost to the inflows as it announced on Tuesday of receiving $1.3 billion as loan disbursements from Chinese banks this week.

“SBP has received $1.3 billion as GOP loan disbursements from Chinese Banks this week. This brings the total amount of official inflows received since 23rd June 2020 to around $3 billion,” the bank said.

On June 24, the SBP had received $1bn — $500mn each from World Bank (WB) and Asian Development Bank (ADB) to facilitate the country during its fight against the coronavirus pandemic.

ADB approves $500mn loan for Pakistan's fight against COVID-19

Earlier this month, the ADB had approved a loan worth $500 million to Pakistan to help the country's coronavirus health and economic response and "protect poor" citizens.

The development — part of the COVID-19 Active Response and Expenditure Support (CARES) Programme — took place following a meeting of the ADB's Board of Directors in Philippines' capital, Manila.

Read also: SBP receives $1 billion from World Bank, ADB in fight against COVID-19

In its statement, the bank had said the loan would help the Pakistani government "deliver social protection programs to the poor and vulnerable, expand health sector capabilities, and deliver a pro-poor fiscal stimulus to boost growth and create jobs as the country fights the novel coronavirus disease (COVID-19) pandemic".

Pakistan's current account turns surplus of $13mn

The country’s current account turned into a surplus of $13 million on May 20 against a deficit of $530 million in April 20 and $1,004 million in May 19, the central bank had announced on June 24.

"Pakistan’s Current Account turned into a surplus of $13 million May 20 against a deficit of $530 million in April 20 and $1004 million in May 19," stated a tweet from the SBP.

The SBP had said that the current account deficit has been slashed by 73.6% on a cumulative basis during July-May FY2020 to $3.3 billion from a whopping $12.5 billion in the same period last year.

"On cumulative basis, the CAD has narrowed by 73.6% to $3.3 billion during Jul-May FY20 from $12.5 billion during the same period last year."