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To overcome the depleted country of cash reserves, a loan of USD 2.3 billion from the Bank Chinese consortium to Pakistan is expected to be “a few days.
In particular, the Consortium of Bank China and Pakistan has signed the previous USD 2.3 billion loan facility agreement. In the latest update on the agreement, on Wednesday, Pakistani Finance Minister Miftah Ismail said that the cash inflows based on the loan agreement were expected in a few days, reporting Pakistan’s local media outlets, Fajar.
Bringing to Twitter, Ismail wrote, “The Chinese Bank consortium today has signed a RMB 15 billion ($ 2.3 billion) loan facility agreement after being signed by the Pakistani team yesterday. Orchow is expected to be in a few days. We are grateful for the Chinese government to facilitate transactions this. “
Pakistani Foreign Minister Bilawal Bhutto Zardari wrote on social media, “Grateful to President Xi Jinping, Foreign Minister Wang Yi and the people of China. The Consortium of Bank China today has signed a loan facility agreement of 15 billion RMB, the people of Pakistan are very grateful for continuous support From our friends who are all weather. “
Pakistan is in a deep financial crisis and this development emerged after the report emerged Pakistan achieved understanding with the International Monetary Fund (IMF), in accordance with media outlets.
Ismail said that after a visit by Foreign Minister Bilawal Bhutto-Zardari and a follow-up discussion by Prime Minister Shehbaz Sharif with Prime Minister Li Keqiang, the Chinese not only agreed to roll that number but also did so with a cheaper interest rate of 1.5pc plus Shanghai Interbank offers a level (shibor) instead of 2.5pc earlier plus shibor.
However, in the announcement of Wednesday, Ismail did not explain further about the agreement with the consortium.
The loan agreement between China and Pakistan also came in the middle of the report that Pakistan blindly followed the Sri Lanka road which would make the country fall into the Chinese debt trap. The fragile economy of Pakistan experienced another setback when it was recently China demanded a repayment, in November 2023, from USD 55.6 million for the Lahe Orange Line project, reported Italian publication Osservatorio Globalizzie.
