Pakistani Finance Minister Miftah Ismail said on Friday that a loan of USD 2.3 billion from a Chinese consortium of banks had been credited to the central bank’s account.

To cope with the country’s dwindling cash reserves, Ismail earlier said that a loan of USD 2.3 billion from a Chinese consortium of banks to Pakistan was expected within a “couple of days”.

Notably, a Chinese consortium of banks and Pakistan had signed a USD 2.3 billion loan facility agreement earlier. In an update on the agreement, on Wednesday, Pakistan’s finance minister Miftah Ismail said that cash inflow under the loan agreement is expected within days.

Pakistan is in a deep financial crisis and this development comes after reports emerged of Pakistan reaching an understanding with the International Monetary Fund (IMF), as per the media outlet.

Ismail said that after a visit by Foreign Minister Bilawal Bhutto-Zardari and follow-up discussions by Prime Minister Shehbaz Sharif with Prime Minister Li Keqiang, the Chinese side had not only agreed to roll over the amount but also done so at a cheaper interest rate of 1.5pc plus Shanghai Interbank Offered Rate (Shibor) instead of earlier 2.5pc plus Shibor.

However, in Wednesday’s announcement, Ismail did not elaborate further on the agreement with the consortium.