'Chinese banks agree to refinance cash-strapped Pak'

Islamabad: Chinese banks have agreed to refinance Pakistan with USD 2.3 billion worth of funds in a massive relief for the cash-starved country to help it bolster its depleting foreign exchange reserves, the finance minister has said.

Miftah Ismail said on Thursday that the terms and conditions for refinancing have been agreed and the inflow is expected "shortly" after some routine approvals from both sides.

Good News: The terms and conditions for refinancing of RMB 15 billion deposit by Chinese banks (about US$ 2.3 billion) have been agreed. Inflow is expected shortly after some routine approvals from both sides. This will help shore up our foreign exchange reserves, the minister said in

a tweet.

Pakistan is facing an uncertain economic situation due to a delay in the revival of a stalled multibillion-dollar International Monetary Fund (IMF) programme.

The development comes as a massive relief to economic policymakers that saw foreign exchange reserves held by the State Bank of Pakistan fall to USD 10.09 billion, with the level staying at less than 1.5 months of import cover, Geo News reported.