ISLAMABAD: Pakistan on Monday received $2.2 billion soft loan extended to Pakistan by Chinese government in a bid to help out its close ally in addressing a possible balance of payment crisis.
The State Bank of Pakistan (SBP) said that it had received 15 billion Renminbi (RMB) — also known as yuan — equivalent to $2.2 billion, as proceeds for a loan extended to Pakistan by the Chinese government.
Finance ministry adviser and spokesperson Dr Khaqan Hassan Najeeb confirmed the development through a tweet.
Last week, the Ministry of Finance had announced that the SBP would receive a $2.1bn, from China by Monday (today).
Dr Najeeb had said that “all procedural formalities” for the transfer of the loan being provided to Pakistan by the Chinese government have been completed, and “the funds will be deposited in the SBP account by Monday, March 25”.
The loan facility, the spokesperson had said, “will further strengthen foreign exchange reserves and ensure a balance of payment stability.”
Following a meeting in Beijing between Chinese Premier Li Keqiang and Prime Minister Imran Khan in November 2018, China had said that it was willing to offer assistance to Pakistan to help it weather its current fiscal woes, but that the terms of such aid were still being discussed.
Shortly after, Chinese Consul General Long Dingbin had said during an interview that in order to “boost Pakistan’s economy”, Beijing is investing in multiple sectors and launching business ventures instead of providing loans.
In February this year, in response to a Financial Times report which said that China had pledged to lend at least $2bn to Pakistan to shore up its foreign exchange reserves and prevent further devaluation of the rupee against the dollar, Chinese foreign ministry spokesman Lu Kang had tentatively acknowledged that it was extending financial assistance to help Pakistan.
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription
