The devastating situation of Pakistan’s economy is not hidden from anyone around the world. In such a situation, Islamabad has once again turned to its ‘Great Friend’ China to remove the country from the financial crisis. According to Pakistani government sources, Islamabad has asked for a fresh loan of between 1-2 billion dollars or about 68-135 billion rupees from China.
According to ‘Don News’, the debt given to Pakistan by China and its public sector banks is expected to reach $ 5 billion by June this year. In fact, there is a significant reason behind the demand for a loan at such a large level from China that the US has to wait for the help given to Pakistan.
With debt from China, Islamabad will try to save its fast-growing foreign exchange reserves. In May last year, Pakistan had foreign exchange reserves of $ 16.4 billion, which has dropped to $ 10.3 billion last week. Explain that this loan has been sought at a time when in April this year, China’s commercial banks had given a $ 1 billion loan to the Pakistan government.
Pakistan will have to go to the IMF!
Due to the declining foreign exchange reserves and the continuous increase in Pakistan’s current account deficit, many financial analysts believe that after the general elections to be held in July, Pakistan will now open the International Monetary Fund’s door for its second bailout package. Will have to clap The last time the IMF gave Pakistan $ 6.7 billion in aid
A senior official of the Pakistan government said, “I think that this month we will get between $ 1 billion and $ 2 billion. This fund will be provided by the institutions run by the Chinese government. ‘ Another government official confirmed that Pakistan has done serious negotiations with Beijing for funding up to $ 2 billion. However, officials of Pakistan’s Ministry of Finance did not comment on this.
IMF estimates decreased growth rate
Pakistan has once again reached a state of economic crisis like the year 2013. Considering the country’s economic situation, the International Monetary Fund has reduced the economic growth rate of Pakistan to 4.7 percent this year for the next year. That is much less than the government’s target of 6.2 percent.
How much debt did you take from China?
By March this year Pakistan had taken a loan of 1.2 billion dollars from China in the previous 6 months. During this time period, the Pakistani government also took a $ 1.7 billion commercial loan from China, which was given by most Chinese banks. In April, Pakistan’s central bank once again took a $ 1 billion loan from China’s commercial banks.
Pak Rupee falling
The Pakistani rupee is also declining due to the sluggish economy of the economy. At present, the price of one dollar is 115.50 / 116 Pakistani rupees. Despite the devaluation twice since December last year, the Pakistani rupee declined 9.8% in the past 6 months. Not only that, in the last 3 weeks the currency reserves have fallen to $ 1.2 billion, which will end after just 2 months of imports.
Demand UAE banks around $ 200 million loan
Last week, the Pakistani government demanded a $ 200 million loan from three banks of the United Arab Emirates (UAE). The loan sought for one year will be given to the Bank of Dubai, Emirate NBD and Noor Bank. Pakistan’s Finance Minister Miffa Ismail has also confirmed that it is being borrowed to repay the growing debt of the country.