The loan facility agreement with Pakistan and consortium of Chinese banks is expected within a couple of days to prop up the country's depleting foreign reserves, according to Federal Minister of Finance Miftah Ismail.

"We thank the Chinese government for facilitating this transaction," said Finance Minister Miftah Ismail. (AFP Archive)

China has approved a $2.3 billion loan to prop up Pakistan's depleting foreign reserves.

The loan facility agreement was inked between Islamabad and a consortium of Chinese banks with cash inflow expected “within a couple of days,” Pakistan’s Finance Miftah Ismail said on Twitter on Wednesday.

"The Chinese consortium of banks has today signed the RMB 15 billion ($2.3 billion) loan facility agreement after it was signed by the Pakistani side yesterday (Tuesday). Inflow is expected within a couple of days. We thank the Chinese government for facilitating this transaction," Ismail said.

The Pakistani rupee closed at an all-time low of 211.93 against the US dollar after losing 0.21 percent in the interbank market on Wednesday.

Islamabad’s foreign exchange reserves currently stand at nearly $9 billion.

Foreign Minister Bilawal Bhutto Zardari thanked Beijing for the loan.

READ MORE: IMF board okays $1B disbursement for Pakistan

Augmented loan

Pakistan's finance minister expects the International Monetary Fund (IMF) to increase its funding amount and the duration of its bailout programme, he said on Wednesday.

Tuesday night's talks between the two sides had essentially locked budget and fiscal measures, the minister, Miftah Ismail, told Reuters, and he did not anticipate any hiccups moving forward.

"I am also expecting that the duration of the program will be extended by a year and the amount of loan will be augmented," he said, but added that the IMF had not yet committed to the changes.

READ MORE: Why is Pakistan asking for a loan from the IMF?

Source: TRTWorld and agencies