Pakistan in financial crisis: Pakistan’s economic situation is constantly deteriorating. Cash-strapped Pakistan has been forced to agree to a loan agreement with the International Monetary Fund to deal with the situation. As a result, he will be able to obtain a 2.3 billion loan from China under the loan agreement. The report came from a Pakistani media outlet. Pakistan is expected to receive a loan of US 2. 2.3 billion from the Chinese Consortium of Banks in a few days to deal with the country’s dwindling cash reserves.
Pakistan and China have signed a loan agreement.
In particular, a consortium of Chinese banks and Pakistan had already signed a سہ 2.3 billion loan facilitation agreement, according to a report in Pakistan’s Dawn newspaper. The latest information on the agreement came from Pakistan’s Finance Minister Muftah Ismail on Wednesday, June 22. He said that under this loan agreement, the cash is expected to reach Pakistan in a few days. Pakistan’s Finance Minister Muftah Ismail wrote on his Twitter account: Signed. Facilitation Agreement Signed. Signed. This cash flow is expected in a few days. We thank the Chinese government for facilitating this transaction.
Pakistan’s Finance Minister Ismail said that after Foreign Minister Bilawal Bhutto Zardari’s visit and Prime Minister Shahbaz Sharif’s follow-up talks with Chinese Prime Minister Li Keqiang, the Chinese side not only formally agreed to give the cash. Of course, he also gave this loan. An affordable rate of interest. Earlier, Shanghai Interbank offered 2.5 pc plus Shabor interest rate, but now it has been reduced 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?
Referring to the loan deal, Pakistan’s Foreign Minister Bilawal Bhutto also wrote on social media, “I am grateful to President Xi Jinping, Foreign Minister Wang Yi and the people of China. Thank you for your continued support and assistance to the people of Pakistan, good and bad at all times.
Pakistan’s economic future with China
According to the Pakistani newspaper Dawn, Pakistan is facing a severe financial crisis and this new thing has come to light after the report of Pakistan reaching an agreement with the International Monetary Fund (IMF). The agreement also came to light that Pakistan is blindly following the path of Sri Lanka due to which the country will fall into the trap of Chinese debt. The Italian publication Osservatorio Globalizzazione writes that Pakistan’s already weak and declining economy suffered another blow when China recently pledged US 55 55.6 million for the Lahore Orange Line project by November 2023. The dollar demanded a refund. Meanwhile, the State Bank of Pakistan’s foreign exchange reserves declined sharply by US 2.915 billion at the end of March due to the repayment of foreign loans. Overall, if we look at the situation, as far as China-Pakistan relations are concerned, Pakistan’s economic future with China is bleak.
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