bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Reuters

China has lent Pakistan US$1 billion to boost the South Asian country’s plummeting foreign currency reserves, two sources in Pakistan’s finance ministry told Reuters, amid growing speculation of another International Monetary Fund bailout.
The latest loan highlights Islamabad’s growing dependence on Chinese loans to buffer its foreign currency reserves, which plunged to US$9.66 billion last week from US$16.4 billion in May 2017.
The lending is the outcome of negotiations for loans worth US$1-2 billion that was first reported by Reuters in late May, the two sources told the news agency.
Pakistan waves a bin Laden olive branch at US, as Chinese cash loses shine
“Yes, it is with us,” said one finance ministry source, in reference to the Chinese money. The second source added that the “matter stands complete”.
The finance ministry spokesperson did not respond to a Reuters request for comment.
With the latest loan, China’s lending to Pakistan in this financial year ending in June is set to breach US$5 billion.
In the first 10 months of the financial year China lent Pakistan US$1.5 billion in bilateral loans, according to a finance ministry document seen by Reuters. During this period Pakistan also received US$2.9 billion in commercial bank loans mostly from Chinese banks, ministry officials told Reuters.
Pakistan looks to China for fresh loans of up to US$2 billion
Beijing’s attempts to prop up Pakistan’s economy follow a strengthening of ties in the wake of China’s pledge to fund badly-needed power and road infrastructure as part of the US$57 billion China-Pakistan Economic Corridor (CPEC), an important cog in Beijing’s vast Belt and Road Initiative.
But analysts say China’s help will not be enough and predict that after the July 25 national election the new administration is likely to seek Pakistan’s second bailout since 2013, when it received a package worth US$6.7 billion from the IMF.
“Looking at the current scenario, it is likely after the new government comes in that they will go to the IMF,” said Suleman Maniya, head of research at local brokerage house Shajar Capital.


China, Pakistan wrap up counterterror drills amid concerns over attacks

Pakistan developing long-range ballistic missiles that could hit US: official

Sara Sharif murder: father, stepmother sentenced to life for killing 10-year-old in UK

Imran Khan continues to defy Pakistan’s government from jail as his wife leads protests

Pakistan

China lends US$1 billion to Pakistan as speculation over IMF bailout grows

Analysts expect Pakistan to go to the IMF after this month’s election. Photo: Bloomberg

News

China

Diplomacy

Economy

China Economy

Country is increasingly seeking Chinese help in increasing foreign exchange reserves


Chinese offshore investment

China economy