Devdiscourse
Development News Edition
Give Feedback
write for Us

China expected to offer financial aid to Pakistan during high-level visit


Devdiscourse News Desk beijing China
Updated: 02-11-2018 20:51 IST
China expected to offer financial aid to Pakistan during high-level visit

(Image Credit: Twitter)

Pakistani Prime Minister Imran Khan on Friday held talks with Chinese President Xi Jinping here amid reports that Beijing was likely to give $6 billion economic aid to Islamabad to manage its financial crisis.

There was no official version from either side about what transpired at the meet, but a report by Pakistan's Geo TV said that Beijing was expected to give $6 billion in economic aid to Islamabad.

A loan of $1.5 billion was also expected to be offered, along with an additional package of $3 billion for the China-Pakistan Economic Corridor (CPEC), the report added.

Pakistan is in excessive foreign debt and to stave off the crisis it has already secured $6 billion from Saudi Arabia and reached out to the International Monetary Fund for the bailout.

Beijing is wary of the US-dominated International Monetary Fund that has sought from Islamabad the financial details of the CPEC. This might prompt Beijing into issuing more loans to its "all-weather ally" Islamabad.

Khan also met Chinese-Asia Infrastructure Investment Bank chief Jin Liqun. His four-day visit comes at a time when Islamabad has shown misgivings about Beijing's connectivity project, the CPEC.

The new government under Khan has expressed concern over the Chinese debt under the $60 billion CPEC, a key project of Beijing's Belt and Road initiative.

In fact, it slashed the budget for a railway project under the CPEC from $8.2 billion to $6.2 billion, citing Islamabad's financial constraints.

Khan's invitation to Saudi Arabia to join the Chinese-funded CPEC, which he retracted later, would have irked Beijing. Saudi Arabia is a US ally and enemy of Iran, the largest exporter of oil to China.

(With inputs from agencies.)

COUNTRY : ChinaPakistan

POST A COMMENT