China extends $700 million loan to Pakistan

New Delhi: China has extended a $700 loan to Pakistan to shore up foreign exchange reserves, according to news reports. The loan will help Pakistan recover from an economic crisis, according to the reports.

“AlhamdoLilah! Funds $700 million [were] received today by [the] State Bank of Pakistan from [the] China Development Bank," tweeted Pakistan’s finance minister Ishaq Dar, who referred to the deposit as a “lifeline” for his country that has come as the country is thrashing out a deal with the International Monetary Fund to unlock funds from a $6.5 billion bailout.

The loan, which has been given through the state-owned China Development Bank, will boost Pakistan's forex reserves by about 20%.