China provides $2.5 billion loan to Pakistan to boost its forex reserves

BEIJING: China rushes for aid again Pakistan by providing $2.5 billion in support to support its rapidly dwindling foreign exchange reserves, full of its all-weather cash, months after it transferred a $4.5 billion loan dollars due this year.
The announcement of China’s support comes after France signed an agreement with Pakistan to suspend a $107 million loan under the G20 Debt Services Suspension Initiative (DSSI).
The agreement was signed by the Minister of Economy Mian Asad Hayaud Din and French Ambassador Nicolas GaleyPakistan’s Economic Department said in a statement on Monday.
“China and Pakistan are an all-weather strategic cooperation partner. China has always supported Pakistan’s economic development, improved livelihoods and maintained financial stability,” said a spokesman for the Chinese Foreign Ministry. Zhao Lijian said at a news conference here while answering a question about China providing 15 billion yuan ($2.3 billion) to Pakistan to build up its dwindling foreign exchange reserves.
Pakistani media quoted the Prime Minister Shehbaz Sharif like saying that Pakistan hopes to get 2 billion dollars from IMF.
China’s latest support in addition to Beijing revolving around $4.5 billion in debt owed by Islamabad in March of this year and $2.5 billion awarded in 2019 to boost China’s dwindling foreign exchange reserves. Pakistan.
Pakistan is the second country in the subcontinent after Sri Lanka to face a severe economic crisis despite huge Chinese investments and loans.
China received desperate pleas from Sri Lanka’s leaders before the country went bankrupt due to its entire $51 billion foreign debt.
China’s new support for Pakistan after the visit of the Commander-in-Chief of the Pakistan Army Qamar Javed Bajwa This month, the two countries agreed to strengthen defense and counter-terrorism cooperation.
Last month, Pakistani Foreign Minister Bilawal Bhutto made his first visit to Beijing and held talks with his Chinese counterpart. Wang Yi.
Cash-strapped Pakistan has faced growing economic challenges, with high inflation, dwindling foreign exchange reserves, a growing current account deficit and a depreciating currency.
Finance Minister of Pakistan Miftah Ismail said earlier this month.
Pakistan is facing an uncertain economic situation due to a delay in reviving the stalled International Monetary Fund (IMF) multi-billion dollar program.
Saudi Arabia has agreed to provide Pakistan with a “big package” of around $8 billion to help it revive its ailing economy. Saudi Arabia provided $3 billion in deposits to the State Bank of Pakistan in December 2021 while Saudi Arabia’s oil facility came into operation from March 2022, providing for Islamabad $100 million to buy oil.
Saudi Arabia provided $3 billion in deposits to the State Bank of Pakistan in December 2021 while Saudi Arabia’s oil facility came into operation from March 2022, supplying Pakistan with 100 million dollars to buy oil.

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