As Pakistan drowns in pool of debts, China swims to rescue by lending $2 billion to Pak’s ailing economy

Islamabad, March 22: The year 2019 has been a bad start for Pakistan as all its worst nightmares are coming true. With India taking off the tag of ‘Most Favoured Nation’ from Pakistan and imposing heavy duty on exports the state has been swimming in debts. And to rescue the drowning son, father China has extended its helping hand. Yes, it’s right..! Begging for penny, the cash-strapped Pakistan will receive over 2 billion US Dollars loan from China by Monday to provide a boost to its ailing economy.

 

The information came into limelight after Pakistan’s Finance Ministry announced that all procedural formalities for the transfer of the 2.1 billion US Dollars loan being provided by the Chinese government have been completed, and the funds will be deposited in the State Bank of Pakistan’s account by Monday.

Pakistan has received 1 billion US dollars each from Saudi Arabia and the UAE, as part of the bailout packages by the two Gulf nations to help shore up Islamabad’s dwindling foreign currency reserves.

Islamabad is also in talks with the International Monetary Fund (IMF) for a bailout package. Earlier, Pakistan officials said that Islamabad would seek around 8 billion US dollars from the IMF which would be the biggest package by the Fund for Islamabad.

Although the Pakistan government has secured a breathing space from Saudi Arabian and the UAE loans, an IMF programme is essential to unlock access to resources from other multilateral lenders like the World Bank and the Asian Development Bank, as well as the global capital markets.