The Ministry of Finance has said that the State Bank of Pakistan (SBP) will receive a 15 billion yuan loan ($2.1 billion) from China by Monday.
A spokesperson for the ministry, Dr Khaqan Najeeb Khan, said that “all procedural formalities” for the transfer of the loan being provided to Pakistan by the Chinese government have been completed.
He said that “the funds will be deposited to the SBP account by March25”.
The loan facility, the spokesperson said, “will further strengthen foreign exchange reserves and ensure balance of payment stability.”
Following a meeting in Beijing between Chinese Premier Li Keqiang and Prime Minister Imran Khan in November 2018, China had said that it was willing to offer assistance to Pakistan to help it weather its current fiscal woes but that the terms of such aid were still being discussed.
Shortly after, Chinese Consul General Long Dingbin had said during an interview that in order to “boost Pakistan’s economy”, Beijing is investing in multiple sectors and launching business ventures instead of providing loans.
In February this year, Chinese Foreign Ministry Spokesman Lu Kang had tentatively acknowledged that it was extending financial assistance to help Pakistan.
“The Chinese side has offered and will continue to offer its best through assistance, trade, investment and all-around practical cooperation to support and boost Pakistan’s economic and social development,” Kang had said.
Published in Daily Times, March 22nd 2019.
