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Chinese bank to give $300 million to Pakistan today: Ishaq Dar

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  • China’s ICBC had approved a loan facility of $1.3bn for Pakistan.
  • Part of the amount has been returned in previous disbursements.
  • Development will boost Pakistan’s low foreign exchange reserves.

The Industrial and Commercial Bank of China (ICBC) is set to give Pakistan $300 million today in a move that will boost the country’s foreign exchange reserves, Finance and Revenue Minister Ishaq Dar said on Friday.

He wrote on Twitter that ICBC had approved a loan facility of $1.3 billion for Pakistan, which had earlier been repaid. The Chinese bank has already returned part of the amount in two previous disbursements.

“State Bank of Pakistan would receive back third and last disbursement today in its account amounting to $300 million,” the finance czar wrote on his official Twitter handle. “It will shore up forex reserves of Pakistan.”

The third critical disbursement from the ICBC will be released after Pakistan completes the necessary documentation.

Last month, the Chinese lender approved a rollover of a $1.3 billion loan for Pakistan. Following the announcement, the Chinese bank deposited $500 million — the first disbursement — on March 4 and then the second tranche of an equivalent amount was released on March 17.

The cash-strapped nation of 220 million people is going through one of its biggest economic crises ever as multiple delays in its loan program created a dollar shortage, and import restrictions and reduced foreign-exchange reserves to less than one month of imports.

The nation’s foreign exchange reserves stand at $4 billion while it needs to pay $2.2 billion in the quarter ending June. It expects to roll over a debt of $2.3 billion, according to State Bank of Pakistan Governor Jameel Ahmad.

More external financing will be coming to Pakistan only after Islamabad signs a deal with the International Monetary Fund (IMF), which the minister said should be done by next week.

The lender has been negotiating the deal with Pakistan since end-January to clear its ninth review, which if approved by its board will issue over $1 billion tranche of the $6.5 billion bailout agreed upon in 2019.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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