Pakistan seeks USD 21 billion support from China

INTERNATIONAL DESK: Pakistan has sought financial support of about $ 21 billion from China.

Islamabad has requested a rollover of existing loans of $ 10.735 billion and $ 10 billion as deposit fund, to meet future needs, Business Recorder reported citing sources on Tuesday.

During the Pakistan Prime Minister Imran Khan’s visit to China in February, several agendas were discussed including a rollover request of all financing facilities upon maturity. One SAFE (China’s State Administration of Foreign Exchange) deposit of USD 2.0 billion will be maturing on March 23, 2022.

Likewise, a 3-year commercial loan of People’s Renminbi (RMB) 15 billion equivalents to USD 2.235 billion from a consortium of China Development Bank (CDB), Bank Of China and Industrial and Commercial Bank of China Limited (ICBC) is maturing on March 25, 2022.

Moreover, the State Bank of Pakistan has proposed the enhancement of the currency swap arrangement to USD 15 billion.
Pakistan’s devastating economic condition forced the country to seek loans from different countries.

China and Saudi Arabia had already granted a huge loan to Pakistan in the past few years. In December 2021, Saudi Arabia granted a loan of USD 3 billion to Pakistan. (ANI)