China will give 69 billion rupees to Pakistan for increase foreign exchange reserves.
Islamabad, China has taken up the charge to handle Pakistan’s perishable economy. China has now given the financial assistance of $ 1 billion to increase the decreasing foreign exchange reserves of Pakistan. Two sources in the Finance Ministry have given this information to Reuters, among the apprehensions of going to the second child bailout package in Pakistan’s International Monetary Fund.
Islamabad’s dependence on China is clearly visible to save the dwindling foreign exchange reserves from fresh debt. In May 2017, Pakistan had $ 16.4 billion foreign exchange reserves, which had fallen to $ 9.66 billion last week.
The sources said that the talks between the two countries were going on from May for this loan. Pakistan had asked for $ 1 to 2 billion loan from China.
On the question of loans from China, a source from the Finance Ministry said, “Yes, we have got it.” The second source said that this case is now complete. However, the Ministry of Finance did not make any statement on this.
After fresh debt, the Chinese side has now become a $ 5 billion loan from China for the fiscal year ending in June.
According to the finance ministry documents, in the first 10 months of the financial year, China gave Pakistan $ 1.5 billion bilateral loan. Ministry officials said that during this period, Pakistan has received loans from the $ 2.9 billion commercial banks, most of which came from the Chinese banks.
Let’s say that Beijing is constantly trying to strengthen Pakistan’s economy in order to make the China-Pakistan economic corridor continuously, at a cost of $ 57 billion.
But experts say that China’s help is not enough for Pakistan and after the country’s general elections on July 25, the new administration will have to take another bailout package from Pakistan for the International Monetary Fund. Earlier, in the year 2013, Pakistan was given a bailout package.