Pakistan Economy Crisis: Due to the economic crisis, some relief news has come for Pakistan standing on the verge of bankruptcy. He has received assurance of help from his friend China. A Chinese bank has assured Pakistan that it will give a re-finance loan of US $ 500 million to Pakistan within the next few days. In this way, out of the total amount of US $ 2 billion, Pakistan will get a commercial loan of up to US $ 1.7 billion.
Pakistani officials are also trying to get help from friendly countries and multilateral creditors before moving towards a staff-level agreement with the International Monetary Fund (IMF).
China has helped a lot in the last few weeks
According to the report of The News International, a top official of the Pakistan Finance Department confirmed on Wednesday that another $500 million commercial loan is coming from a Chinese bank. Chinese banks have given US$ 1.2 billion as commercial loans to Pakistan in the last few weeks. Explain that Pakistan had also requested to give rollover on Chinese safe deposit of US $ 2 billion within the current month.
Now Pakistan is looking for help from other countries
Now Pakistani officials are looking at their US$ 6 billion external aid from Saudi Arabia, UAE and Qatar as well as the World Bank and the Asian Infrastructure Investment Bank (AIIB). The guarantee of securing external financing is important for the sustainability of the IMF programme, as it is difficult for the State Bank of Pakistan to increase its foreign exchange reserves to USD 8-10 billion by the end of June 2023. However, the staff estimated them at US$ 16 billion in August 2022 after completing the seventh and eighth reviews under the Extended Fund Facility of US$ 6.5 billion.
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