A finance ministry official said the loan was in addition to other facilities that China has already extended to Pakistan. He said the money could come by Thursday.
China Development Bank did not respond to a faxed request for comment.
Prime Minister Shehbaz Sharif said he was hopeful of reaching an agreement with the IMF as soon as the country completes a series of steps demanded by the lender.
Addressing his cabinet, he said that the government is focusing on austerity as a top priority. “Our government will use all resources to overcome the crisis,” he said.
The receipt of external financing is one of the measures needed before the IMF can sign a staff-level agreement that would unlock more than $1 billion in funding, which has been suspended since late last year.
Former deputy governor of Pakistan’s Central Bank Murtaza Syed told Reuters, “The fact that new money is being given to Pakistan and yet old loans are being given is a sign that the global community does not care about Pakistan for its externalities.” Committed to helping meet the challenges.”
