Chinese money to shore up critically low reserves
More external financing needed to get an IMF deal
PM hopes to get IMF funding soon
International bond prices fall

ISLAMABAD, Feb 22 Reuters Pakistan will this week receive a new 700 million loan from China to help shore up its foreign exchange reserves, the country39;s finance minister said on Wednesday, in another step to help the South Asian nation recover from an economic crisis.

The credit facility, made through the stateowned China Development Bank will boost Pakistan39;s forex reserves by about 20 and comes as the country is thrashing out a deal with the International Monetary Fund IMF to unlock funds from a 6.5 billion bailout.

This amount is expected to be received this week by State Bank of Pakistan which will shore up its forex reserves, Finance Minister Ishaq Dar said on Twitter.

A finance ministry official said the loan was in addition to other facilities that China has already extended to Pakistan. The money could come as early as Thursday, he added.

China Development Bank did not respond to a faxed request for comment.

Prime Minister Shehbaz Sharif said he was hopeful of reaching a deal with the IMF as soon as the country completes a series of steps demanded by the lender.

Addressing his cabinet, he said the government was focusing on austerity as a top priority. Our government will utilise all resources to overcome the crisis, he said.

The receipt of external financing is one of the measures…