HomeBusinessChina helps Pakistan with $2.1 billion loan

China helps Pakistan with $2.1 billion loan

Most Read

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.

- Advertisement -

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.

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.

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 Morning Newsletters

Sign up to receive the latest news stories, exclusive interviews, and more in your inbox.

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

Editor's Pick

Krishna Mali
Krishna Mali
Founder, CEO & Group Editor of TechGraph.

Read More Stories

UK Housing Market Grinds to a Halt as Rates Bite

Britain’s once-thriving housing sector is now flatlining amid a tightening chokehold of astronomical mortgage rates. New data reveals house...

Tech Mahindra Set up Innovation Centre In Espoo Finland

India-based multinational technology company, Tech Mahindra has today inaugurated its innovation centre in Espoo, Finland. The new centre will accommodate...

Innovative Financing: Paving the Way for a More Agile Financial Ecosystem

At a time of high inflation and global rises in interest rates by Central Banks, we are facing a...

Apple’s first ever dual-sim iPhone

The Indian Apple users are in for a treat as the leading smartphone manufacturer introduces its first-ever dual SIM...

Now, US users can see what Apple has collected from their device

Apple Inc on Wednesday rolled out an online tool to users in the United States and several other countries...

How AI Is Crucial For Business Strategy Management

There is no doubt that AI has been reshaping the business strategies world over with companies realizing that artificial...