FMT:
China lends Pakistan further US$700mil to shore up FX reserves
The new credit facility will give their forex reserves a 20% boost.
Pakistan’s finance minister Ishaq Dar says they expect to receive the new US$700 million loan from China this week. (AP pic)
ISLAMABAD: Pakistan will this week receive a new US$700 million loan from China to help shore up its foreign exchange reserves, the country’s finance minister said today, in another step to help the South Asian nation recover from an economic crisis.
The credit facility, made through the state-owned China Development Bank will boost Pakistan’s forex reserves by about 20% and comes as the country is thrashing out a deal with the International Monetary Fund (IMF) to unlock funds from a US$6.5 billion bailout.
“This amount is expected to be received this week by State Bank of Pakistan which will shore up its forex reserves,” finance minister Ishaq Dar said on Twitter.
A finance ministry official said the loan was in addition to other facilities that China has already extended to Pakistan. The money could come as early as Thursday, he added.
China Development Bank did not respond to a faxed request for comment.
Prime Minister Shehbaz Sharif said he was hopeful of reaching a deal with the IMF as soon as the country completes a series of steps demanded by the lender.
Addressing his cabinet, he said the government was focusing on austerity as a top priority. “Our government will utilise all resources to overcome the crisis,” he said.
The receipt of external financing is one of the measures needed before the IMF signs a staff level agreement that will unlock more than US$1 billion in funding, that has been suspended since late last year.
“The fact that new money is being committed to Pakistan and old loans are being rolled over despite this, is a sign that the global community is committed to helping Pakistan meet its external challenges,” former Pakistani central bank deputy governor Murtaza Syed told Reuters.
Single largest creditor
Pakistan is struggling with its worst economic crisis in decades and its foreign exchange reserves, at their lowest in 10 years, are only enough to pay for less than three weeks’ worth of imports. Meanwhile, fiscal adjustments demanded by the IMF are fuelling decades-high inflation.
China is already Pakistan’s single largest creditor with its commercial banks holding about 30% of its external debt. The US, historically a close ally, said this week it was concerned about this debt, and was talking to Islamabad about the “perils” of a closer relationship with Beijing.
ISLAMABAD: Pakistan will this week receive a new US$700 million loan from China to help shore up its foreign exchange reserves, the country’s finance minister said today, in another step to help the South Asian nation recover from an economic crisis.
The credit facility, made through the state-owned China Development Bank will boost Pakistan’s forex reserves by about 20% and comes as the country is thrashing out a deal with the International Monetary Fund (IMF) to unlock funds from a US$6.5 billion bailout.
“This amount is expected to be received this week by State Bank of Pakistan which will shore up its forex reserves,” finance minister Ishaq Dar said on Twitter.
A finance ministry official said the loan was in addition to other facilities that China has already extended to Pakistan. The money could come as early as Thursday, he added.
China Development Bank did not respond to a faxed request for comment.
Prime Minister Shehbaz Sharif said he was hopeful of reaching a deal with the IMF as soon as the country completes a series of steps demanded by the lender.
Addressing his cabinet, he said the government was focusing on austerity as a top priority. “Our government will utilise all resources to overcome the crisis,” he said.
The receipt of external financing is one of the measures needed before the IMF signs a staff level agreement that will unlock more than US$1 billion in funding, that has been suspended since late last year.
“The fact that new money is being committed to Pakistan and old loans are being rolled over despite this, is a sign that the global community is committed to helping Pakistan meet its external challenges,” former Pakistani central bank deputy governor Murtaza Syed told Reuters.
Single largest creditor
Pakistan is struggling with its worst economic crisis in decades and its foreign exchange reserves, at their lowest in 10 years, are only enough to pay for less than three weeks’ worth of imports. Meanwhile, fiscal adjustments demanded by the IMF are fuelling decades-high inflation.
China is already Pakistan’s single largest creditor with its commercial banks holding about 30% of its external debt. The US, historically a close ally, said this week it was concerned about this debt, and was talking to Islamabad about the “perils” of a closer relationship with Beijing.
APASAL TOLONG TAHI LUBANG INI?? APA KAFIR DAPAT??
ReplyDeleteLAGI CABAR AGAMA SUPREMACIST ISAM.... APASAL TOLONG TURKEY YANG GENOCIDE ORANG ARMENIA??....INI BALASAN GEMPA BUMI SYRIA-TURKEY PADAN MUKA.....LIHATLAH BENCANA KAT KELANTAN DAN NEGERI PAS- BERSATU-PN JAGA....APA KEMAJUAN....PADAN MUKA BANJIR MINUM AIR KEROH...MATI DENGGI DAN KELAPARAN!!
Debt trap diplomacy.
ReplyDelete雪中送炭！
DeleteOtherwise, who would want to help a poor country in dire distress?
Yank? IMF? World Bank?
Wakakakaka…
No collaterals, no talk, NO?
Ain't that Debt trap colonialism?
But can a know-nothing mfer sees the difference?
Real numb-skull thinking! When US led IMF bailout you don't cry debt trap but when China loan to the needy you shout debt trap diplomacy when in truth that's how the west rob the developing countries of their crown jewel corporations e.g. Samsung of South Korea is now actually majority owned and control by US after the 1997 financial crisis bailout by IMF. You are just a systemic brainwashed pity!
DeleteThe problem is that corruption is endemic in Pakistan; thus, no amount of money will ever be enough.
ReplyDeleteUnless the root causes of Pakistan's financial woes are resolved, Pakistan will continue to spiral down towards bankruptcy.
So too is the Yankee corruptions within his system in & out!
DeleteThe ONLY saving grace is the Yank can keep printing greenbacks to sustain his practices that none of u would acknowledge as corruption!
But don't worry, the seigniorage might of the US$ is ending soon. When that time comes no one/country on mother earth would allow Yankee using greenback printing to sustain his corruptions/extravaganza!