$700m from China to Pakistan

$700m from China to Pakistan

China, the neighbouring and one of closest country to Pakistan lends $700 million to Pakistan in times of need. China is the second largest economy of the world . China development bank lent $700 million to State Bank of Pakistan, the large amount will shore up Pakistan’s forex reserves.

The domestic currency of Pakistan recovered to one month high level by Rs 260 against Dollar due to this loan from closest country to Pakistan which helped Pakistan on every time of crises.

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Pakistan on high risk of Default

Pakistan is currently managing the high risk of going default in regarding with increased inflation, along with foreign debts repayments and its economy melting down. The large amount of import payments and foreign debts dried the economy below to $3 billion.

According to latest report by State Bank of Pakistan, the country’s foreign exchange reserves imporved by $66 million. Pakistan was also expected to pay back foreign debt in current fiscal year 2023. In all this times of crises, China came forward to rescue Pakistan and help the country in stablising the economy.

Governor of State Bank of Pakistan Jameel Ahmad, said that Pakistan would continue to repay its foreign debt and will put back the economy into stable position soon. The low forex reserves and import taxes also resulted in closing of major factories in Pakistan which made a lot of people jobless and increased inflation.

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Ishaq Dar also talked to media and said that we are trying to sort out solutions to deal with ongoing serious crises. Implementing new mini budget and agreeing on laws by IMF is the current need to solve the ongoing issues.

About Hussain

Hussain is a political commentator, and an adviser to private clients between Pakistan and the Gulf.

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