Islamabad: $2.3 billion loan from Chinese consortium of banks to deal with the country’s dwindling cash reserves Pakistan Expected within “a few days”.
Notably, a Chinese consortium of banks and Pakistan had earlier signed a $2.3 billion loan facility agreement. In a latest update on the agreement, on Wednesday, Pakistan’s Finance Minister Mifta Ismail said that cash inflows under the loan agreement are expected within days, Pakistan’s local media outlet reported. dawn,
Taking to Twitter, Ismail wrote, “Chinese consortium of banks has today signed a RMB 15 billion (~$2.3 billion) loan facility agreement after the Pakistani side signed it yesterday. The inflow is expected within a few days.” We thank the Chinese government for facilitating this transaction.”
Pakistan’s Foreign Minister Bilawal Bhutto Zardari wrote on social media, ‘Grateful to the President Xi Jinpingforeign Minister wang yi and the people of China. As the Chinese consortium of banks signed a RMB 15 billion loan facility agreement today, the people of Pakistan are grateful for the continued support of our all-weather friends.”
Pakistan is in a deep financial crisis and this development comes after reports of a settlement with Pakistan surfaced. International Monetary Fund (IMF), according to media outlets.
Ismail said that after the visit of Foreign Minister Bilawal Bhutto-Zardari and the follow-up discussions by the Prime Minister Shahbaz Sharif with the prime minister li keqiangThe Chinese side had agreed not only to roll over the amount, but also at a cheaper interest rate of 1.5 pc plus Shanghai Interbank Offer Rate (Shibor) instead of the earlier 2.5 pc plus Shibor.
However, in Wednesday’s announcement, Ismail did not elaborate on the agreement with the consortium.
This loan agreement between China and Pakistan also comes amidst reports that Pakistan is blindly following the path of Sri Lanka, due to which the country will be caught in the debt trap of China. Pakistan’s already fragile economy was dealt another blow when China recently demanded a $55.6 million repayment by November 2023 for the Lahore Orange Line project, Italian publication Osservatorio Globalizazione reported.
Meanwhile, at the end of March, the foreign exchange reserves held by the State Bank of Pakistan fell sharply by $2.915 billion, due to repayment of foreign debt. Thus, the economic future of Pakistan is bleak as far as relations with China are concerned.
Notably, a Chinese consortium of banks and Pakistan had earlier signed a $2.3 billion loan facility agreement. In a latest update on the agreement, on Wednesday, Pakistan’s Finance Minister Mifta Ismail said that cash inflows under the loan agreement are expected within days, Pakistan’s local media outlet reported. dawn,
Taking to Twitter, Ismail wrote, “Chinese consortium of banks has today signed a RMB 15 billion (~$2.3 billion) loan facility agreement after the Pakistani side signed it yesterday. The inflow is expected within a few days.” We thank the Chinese government for facilitating this transaction.”
Pakistan’s Foreign Minister Bilawal Bhutto Zardari wrote on social media, ‘Grateful to the President Xi Jinpingforeign Minister wang yi and the people of China. As the Chinese consortium of banks signed a RMB 15 billion loan facility agreement today, the people of Pakistan are grateful for the continued support of our all-weather friends.”
Pakistan is in a deep financial crisis and this development comes after reports of a settlement with Pakistan surfaced. International Monetary Fund (IMF), according to media outlets.
Ismail said that after the visit of Foreign Minister Bilawal Bhutto-Zardari and the follow-up discussions by the Prime Minister Shahbaz Sharif with the prime minister li keqiangThe Chinese side had agreed not only to roll over the amount, but also at a cheaper interest rate of 1.5 pc plus Shanghai Interbank Offer Rate (Shibor) instead of the earlier 2.5 pc plus Shibor.
However, in Wednesday’s announcement, Ismail did not elaborate on the agreement with the consortium.
This loan agreement between China and Pakistan also comes amidst reports that Pakistan is blindly following the path of Sri Lanka, due to which the country will be caught in the debt trap of China. Pakistan’s already fragile economy was dealt another blow when China recently demanded a $55.6 million repayment by November 2023 for the Lahore Orange Line project, Italian publication Osservatorio Globalizazione reported.
Meanwhile, at the end of March, the foreign exchange reserves held by the State Bank of Pakistan fell sharply by $2.915 billion, due to repayment of foreign debt. Thus, the economic future of Pakistan is bleak as far as relations with China are concerned.