HomeBusinessChina helps Pakistan with $2.1 billion loan

China helps Pakistan with $2.1 billion loan

Reader's Pick

Cash-strapped Pakistan will receive over USD 2 billion loan from its “all-weather” ally China by Monday to provide a boost to its ailing economy, the Finance Ministry has announced.

Ministry’s adviser and spokesperson Khaqan Najeeb Khan said that “all procedural formalities” for the transfer of the USD 2.1 billion (15 billion yuan) loan being provided by the Chinese government have been completed, and “the funds will be deposited in the State Bank of Pakistan’s account by Monday, March 25”, the Dawn newspaper reported.

Pakistan has received USD 1 billion each from Saudi Arabia and the UAE, as part of the bailout packages by the two Gulf nations to help shore up Islamabad’s dwindling foreign currency reserves.

Saudi Arabia’s assistance was part of the USD 6 billion bailout package – USD 3 billion balance-of-payments support and another USD 3 billion in deferred payments on oil imports – which Riyadh had agreed in October last year.

- Advertisement -

Islamabad is also in talks with the International Monetary Fund (IMF) for a bailout package.

The loan facility “will further strengthen foreign exchange reserves and ensure balance of payment stability,” the spokesperson said.

Following a meeting in Beijing between Chinese Premier Li Keqiang and Prime Minister Imran Khan in November 2018, China said that it was willing to offer assistance to Pakistan to help it weather its current fiscal woes but the terms of such aid were still being discussed.

Shortly after, Chinese Consul General Long Dingbin had said during an interview that in order to “boost Pakistan’s economy”, Beijing was investing in multiple sectors and launching business ventures instead of providing loans.

- Advertisement -

Earlier, Pakistan officials said that Islamabad would seek around USD 8 billion from the IMF which would be the biggest package by the Fund for Islamabad.

Although the Pakistan government has secured a breathing space from Saudi Arabian and the UAE loans, an IMF programme is essential to unlock access to resources from other multilateral lenders like the World Bank and the Asian Development Bank, as well as the global capital markets.

Subscribe to our Newsletters

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Read latest Business News and Startup news on TechGraph. Watch live and latest news on TechGraph TV. Follow us on Facebook or follow us on Twitter and Instagram. Listen audio news from TechGraph Briefings on Spotify, Google Podcast, Amazon Music & on Apple Podcast.
 

Krishna Mali
Krishna Mali
Founder & Editor of TechGraph.

Latest News

Promoted Links

Related Stories

Paytm Payouts transfers Rs 1,500 crores

India-based e-wallet company, PayTM said, "Its Paytm Payouts has transferred ov...

Japan approves 26 trillion yen as economic stimulus package to combat overseas risks

Japan's cabinet approved an economic stimulus package worth 26 trillion yen ($2...

Sino-US trade war offers Europe’s chance to bank more Chinese reserves: Analysis

Should European countries want the euro to replace the dollar as the world's do...

Samsung Electronics asks its shareholders to use electronic voting for upcoming AGM

Technology giant Samsung Electronics has adopted electronic voting for the firs...

Rahul Gandhi hits on RCEP says, ‘Make in India’ has become ‘Buy from China’

Asserting that "Make in India" has become "Buy from China," Congress leader Rah...

Employees union seeks FIR against Jet Airways boss Naresh Goyal, Vinay Dube and on SBI Chairman

The employee union of Jet Airways, which is facing its worst crisis, Friday sou...

Rajesh Bysani joins Brainly as its new CPO

A New York headquarter peer-to-peer learning platform, Brainly has announced th...

Turno snaps $13.8 Mn from B Capital & Quona Capital

Turno, an India-based commercial electric vehicle (EV) distributor, and financi...

India’s export-import ecosystem needs robust logistics support: Nisschal Jaain, CEO of Shypmax

India’s burgeoning export-import ecosystem requires robust logistics support.

How Software Technologies are Driving Business Growth in India

The pandemic alerted businesses to the need to digitize operations and streamli...