China has decided to give $2.5 billion in loans to Pakistan. In order to boost the foreign exchange reserves of the country, China will be giving $2.5 billion loans to its CPEC partner.
A top government functionary said, “Beijing will place the $2.5 billion in deposits with the central bank.”
Back in July, Pakistan received $2 billion from China which deposited with the State Bank of Pakistan. In last five years, China has saved Pakistan in time of critical economic crisis.
The money will provide breathing space to the government’s strategy till the macroeconomic stabilization steps are taken.
Since Prime Minister of Pakistan Imran Khan came in to power, he has visited Saudi Arabia, United Arab Emirates and China. The aim was to arrange for loans so that Pakistan can get itself out from the economic crisis.
Till now, Pakistan has or will receive $14.5 billion worth of money from the three countries. When Imran Khan came to power he was extremely against the idea of begging for loans from foreign countries. But due to the depleting foreign currency reserves, Khan was compelled to ask for help in shape of loans from the friendly countries.
Saudi Arabia is providing 6 billion financial assistance package to Pakistan, UAE is providing $3 billion in loans to Pakistan at an interest rate of around 3% and China has yet again agreed to provide $2 billion in shape of loans to Pakistan.