Friday, July 1, 2022

Cash-strapped Pakistan will receive २ 2.3 billion from China under a loan agreement


Pakistan in economic crisis: Pakistan’s economic situation has been steadily declining. Cash-strapped Pakistan has been forced to sign a loan agreement with the International Monetary Fund to deal with the situation. As a result, he could receive a कर्ज 2.3 billion loan from China under the loan agreement. The information came from a Pakistani media outlet. To cope with the country’s dwindling cash reserves, Pakistan is expected to receive a US $ 2.3 billion loan from a team of Chinese banks in a few days.

The Pakistan-China loan agreement has already been signed

According to Pakistan’s Dawn newspaper, in particular, the Union of Chinese Banks and Pakistan had already signed a सुविधा 2.3 billion loan facilitation agreement. An update on the agreement was released on Wednesday, June 22, citing Pakistan’s Finance Minister Miftah Ismail. He said the cash under the loan agreement is expected to reach Pakistan in a few days. On his Twitter account, Pakistan’s Finance Minister Miftah Ismail wrote, “The Chinese team of banks today signed the People’s Republic of China (RMB) loan of RMB 15 billion, or $ 2.3 billion, after the Pakistani side signed it. We thank the Chinese government for facilitating this transaction.

Pakistan’s finance minister Ismail said that after a meeting between Foreign Minister Bilawal Bhutto-Zardari and Prime Minister Shahbaz Sharif’s follow-up talks with Chinese Prime Minister Li Keqiang, China not only officially agreed to pay the cash, but also provided the loan. Cheap interest rates. Earlier, Shanghai Interbank offered 2.5 pc plus Shibor interest rate, but now it has reduced it to 1.5 pc plus. However, in Wednesday’s announcement, Ismail did not elaborate on the agreement reached with the consortium.

What did Pakistan’s foreign minister say?

Pakistan’s Foreign Minister Bilawal Bhutto also wrote on social media about the loan agreement, saying, “I am grateful to President Xi Jinping, Foreign Minister Wang Yi and the people of China. To the people of Pakistan for our continued support and assistance during the period.

Pakistan’s economic future with China

According to the Pakistani newspaper Dawn, Pakistan is facing a serious economic crisis and this new issue has come to the fore following the report that Pakistan has signed an agreement with the International Monetary Fund (IMF). And this is a debt agreement between Pakistan. Pakistan is blindly following the path of Sri Lanka, leading to reports that the country will fall into the trap of Chinese debt. The Italian publication Osservatorio Globalizzazione writes that Pakistan’s already fragile and suffocating economy suffered another blow when China recently pledged .6 55.6 million for the Lahore Orange Line project by November 2023. The dollar had demanded a refund. Meanwhile, at the end of March, State Bank of Pakistan’s foreign exchange reserves fell sharply by USD 2.915 billion due to foreign debt repayment. Looking at the overall situation, considering the relations between China and Pakistan, Pakistan’s economic future with China is bleak.

Also read:

The Pakistani rupee has strengthened by 188 rupees against the dollar, the lowest level ever.

Pakistan’s economy: IMF comes forward to help Pakistan, devastated by economic crisis

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