China provides USD 2.3 billion loan to Pakistan to boost its forex reserves
China has again rushed to bail out cash-starved Pakistan by providing USD 2.3 billion in assistance to prop up its fast-depleting foreign exchange reserves, months after Beijing rolled over a USD 4.5 billion loan for its all-weather ally facing growing economic challenges.
''China and Pakistan are all-weather strategic cooperative partners. China always supports Pakistan in growing its economy, improving livelihoods and upholding financial stability,” Chinese Foreign Ministry spokesman Zhao Lijian told a media briefing here while replying to a question about China providing RMB 15 billion (USD 2.3 billion) to Pakistan to build its depleting foreign exchange reserves.
China’s latest assistance is in addition to Beijing rolling over USD 4.5 billion debt due to be paid by Islamabad in March this year and USD 2.5 billion given in 2019 to boost the sagging foreign exchange reserves of Pakistan.
China had skirted desperate pleas from Sri Lankan leaders before the country went bankrupt defaulting on all its foreign debt totalling USD 51 billion.
The new Chinese assistance to Pakistan followed the visit of Pakistan Army Chief General Qamar Javed Bajwa this month during which the two countries agreed to step up defence and anti-terrorism cooperation.
The Pakistani rupee broke all records early this month, dropping to an all-time low of 202.83 against the US dollar.
Chinese banks have agreed to refinance Pakistan with USD 2.3 billion worth of funds in a massive relief for the cash-starved country to help it bolster its depleting foreign exchange reserves, Pakistan Finance Minister Miftah Ismail said early this month.
Pakistan is facing an uncertain economic situation due to a delay in the revival of a stalled multibillion-dollar International Monetary Fund (IMF) programme.
Saudi Arabia has agreed to provide Pakistan with a ''sizeable package'' of around USD 8 billion to help the country revive its ailing economy. Saudi Arabia provided USD 3 billion deposits to the State Bank of Pakistan in December 2021 while the Saudi oil facility was operationalised from March 2022, providing Islamabad with USD 100 million to procure oil.
Saudi Arabia provided USD 3 billion deposits to the State Bank of Pakistan in December 2021 while the Saudi oil facility was operationalised from March 2022, providing Pakistan with USD 100 million to procure oil.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)