$2.3bn Chinese loan expected 'within couple of days', says Miftah.

ISLAMABAD -- Finance Minister Miftah Ismail said on Wednesday that Chinese banks had signed an agreement for about a $2.3 billion loan that would flow into Pakistan's account within a couple of days.

Since February, Pakistan has been seeking a rollover of loans expiring very shortly to support the fast-depleting foreign exchange reserves of the State Bank of Pakistan that stood at $8.99bn as of June 10.

'The Chinese consortium of banks has today signed the RMB [renminbi] 15bn (about $2.3bn) loan facility agreement after it was signed by Pakistani side yesterday,' Mr Ismail tweeted. 'Inflow is expected within a couple of days. We thank the Chinese government for facilitating this transaction.'

Former finance minister Shaukat Tarin and incumbent minister Ismail have repeatedly been claiming that an agreement had been reached for loan rollover, but this did not materialise as Islamabad remained held up to divergent interests of the big powers - China and the United States - in the face of the Russia-Ukraine war.

Read: Hoping for a Chinese rescue

During the February visit of former prime minister Imran Khan to China, Pakistan sought about a $20bn support package. This included a $4bn debt rollover, an extension in currency swap from the existing $4.5bn to $10bn and $5.5bn in additional financial support.

China had since rolled over about $2bn some two months ago but the remaining items have been swept under the carpet.

On June 10, Islamabad had again requested China a $2bn debt rollover. In one of the recent public appearances, Mr Ismail said the government...