Pakistan will get another USD 1.3 billion from all-weather ally China to shore up its fast-depleting forex reserves, Finance Minister Ishaq Dar said on Monday, days after the cash-strapped country received USD 700 million from Beijing. Addressing a press conference, Dar said that the Industrial and Commercial Bank of China Ltd (ICBC) would provide the funding in the coming days.
"All our formalities with the ICBC are complete as of last night. We returned them USD 1.3bn in the last few months ... they are giving it back and have renewed this facility," he said.
The minister said that USD 500 million would be transferred to Pakistan possibly in the next few days - by Monday or Tuesday - and another USD 500 million within 10 days.
Last week, Pakistan received a much-needed cash injection of USD 700 million from China to help its ailing economy before the finalisation of talks with the IMF for financial assistance.
It prompted Prime Minister Shehbaz Sharif to express gratitude to the "special friend" of Pakistan.
Dar also assured the citizens that the country would not default.
"We have never defaulted and we won't now. Yes, we were in a precarious situation and are going through it currently," he said.
Talking about the fast-depleting reserves, he said there were USD 3.82 billion with the State Bank of Pakistan and combined with amounts held by commercial banks, the net national reserves were around USD 9.26 billion.
"There will be a further increase in this. China has given proof of great friendship," he said.
Dar also said Pakistan suffered over USD 30 billion in financial losses due to the last year's devastating floods.
"Our requirement (to offset these losses) for the next three to four years is for USD 16 billion or Rs 4,000 billion," he said.
The finance minister said the government had a complete roadmap supported by policies for taking the country out of the difficulties but refused to provide its details.
"I am confident that by June 30 we will take the State Bank's reserves to USD 10 billion and national reserves near to USD 16 billion," he said.
He blamed the previous government led by ousted premier Imran Khan for ruining the country's economy.
He said Pakistan has fulfilled all conditions of the International Monetary Fund to get the next tranche of USD 1.1 billion.
Pakistan and the IMF have been holding virtual talks after the two sides held 10 days of intensive negotiations with an IMF delegation in Islamabad from January 31 to February 9, which failed to reach an agreement.
FAQs
Synopsis. In a major relief to the cash-strapped country, Pakistan received USD 1 billion from China, ARY News reported citing the State Bank of Pakistan. "This is to inform you that USD 1 billion has been received from China," said the central bank in a brief message to journalists on Friday night.
Why Pakistan is important for China? ›
Pakistan has collaborated with China in extensive military and economic projects, seeing both as counterweights to an Indian-Western alliance. Pakistan has also served as a conduit for China's influence in the Muslim world. China also has a consistent record of supporting Pakistan in regional issues.
Did China lend Pakistan $700 million to shore up forex reserves? ›
Pakistan will receive a new $700 million loan from China this week to shore up its foreign exchange reserves. The credit facility comes as Pakistan is thrashing out a deal with the International Monetary Fund (IMF) to unlock funds from a $6.5 billion bailout crucial to stave off economic collapse.
What is the relationship between Pakistan and China military? ›
Pakistan and China have robust defence collaboration. The cooperation spans high-level military exchanges, structured defence and security talks, joint exercises, training of personnel in each other's institutions, joint defence production and defence trade.
How much is Pakistan in debt to China? ›
AidData, a research institute at William and Mary University in the U.S., calculated Pakistan's cumulative public debt exposure to China at $67.2 billion for the period from 2000 to 2021.
How much Pakistan is under China's debt? ›
New Delhi: Close to $69 billion ($68.91 billion) — that's the total sum of money China has lent Pakistan. A considerable chunk of this ($55.8 billion) was lent between 2013 and 2021, with $33 billion lent during a three-year period, from 2015 to 2017, a study has revealed.
Who is Pakistan's best friend? ›
Peoples Republic of China is the best friend of Pakistan who has always supported us on various international forums.
Is Pakistan a US ally? ›
Pakistan is a major non-NATO ally as part of the War on Terrorism, and a leading recipient of U.S. aid.
Is China a true friend of Pakistan? ›
China supports Pakistan's sovereignty, territorial integrity, security, and promotes its social-economic development and prosperity. Actions have proved that no matter how the international situation changes, the friendship between China and Pakistan remains unbreakable.
Which country gave money to Pakistan? ›
The United States began providing economic assistance along and military aid to Pakistan shortly after the country's creation in 1947. In total, the United States obligated nearly $67 billion (in constant 2011 dollars) to Pakistan between 1951 and 2011.
Apart from the UAE, Saudi Arabia has deposited $5 billion with the State Bank of Pakistan. Following the loan rollover by the UAE, the interim government requested the International Monetary Fund (IMF) to dispatch a new mission this month for talks for the last loan tranche of $1.2 billion.
Has Pakistan taken loan from China? ›
China rolls over $2 billion loan to Pakistan, finance minister says | Reuters.
Is Pakistan a Russian ally? ›
Since Pakistan joined the Shanghai Cooperation Organisation, relations between both sides have become closer. Pakistan celebrated the 70th and 75th anniversary of diplomatic relations with Russia. Russian president Vladimir Putin also declared Pakistan as one of its primary partners in South Asia.
How strong is Pakistan military? ›
Pakistan's army was ranked the seventh most powerful in the world last year, but its political power is now under the spotlight amid claims the military has turned the country's upcoming elections "into a farce".
Is it safe to go to Pakistan now? ›
There is a high threat of terrorism in Pakistan. The security situation is fragile and unpredictable. Several terrorist groups are present and operate across the country.
How much China invest in Pakistan? ›
Originally valued at $46 billion, the value of CPEC projects was worth $62 billion as of 2020. In 2022, the Chinese investment in Pakistan rose to $65 billion. China refers to this project as the revival of the Silk Road.
How much money has the US given Pakistan? ›
In total, the United States obligated nearly $78.3 billion to Pakistan between 1948 and 2016 (adjusted to 2016 value of dollar).
What is China doing with Pakistan? ›
The CPEC is an ongoing development mega project which aims to connect Gwadar Port of Pakistan to China's northwestern region of Xinjiang, via a network of highways, railways and pipelines.
How much money Pakistan borrowed from other countries? ›
Share. In the throes of a severe multidimensional crisis, cash-strapped Pakistan, whose external debt reached USD 128.1 billion (Sep 2023), has sought financial relief again from one of its largest external creditors, China.
