Cash-strapped Pakistan eyes to secure USD 3-billion loan from China

Islamabad : Pakistan's financial crisis is no hidden secret and some media reports suggest that the nation will be securing a loan of USD 3-billion (PKR 529 billion) from China. This will be done during PM Imran Khan's visit to Beijing scheduled for next week.

Imran Khan will be visiting China on February 3 this year to attend the opening ceremony of Beijing Winter Olympics. He will be holding bilateral talks with the Chinese top officials on the sidelines.

A report by Express Tribune quoted government official saying that the agenda of the meetings will be finalized by Tuesday.

A senior finance ministry official said the government was considering requesting China to approve another loan to the tune of USD 3 billion in China's State Administration of Foreign Exchange, known as SAFE deposits, so as to boost its foreign exchange reserves.

For those who are unaware, China has already invested around USD 11 billion (PKR 1.940 trillion) with Pakistan in the shape of commercial loans and foreign exchange reserves support initiatives, including USD 4 billion (PKR 705 billion) in SAFE deposits.

In the last fiscal year, the country had paid over PKR 26 billion in interest charges to China only for using a USD 4.5 billion (PKR 794 billion) Chinese trade finance facility to repay the maturing debt.

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