Pakistan’s economy has been in trouble for a long time. (Representational Image)
Pakistan’s economy has been in trouble for a long time. Meanwhile, Pakistan has signed a loan agreement with China for $ 2.3 billion. Pakistan has signed this agreement with a consortium of Chinese banks.
Pakistan (Pakistan) The economy has been in crisis for a long time. Meanwhile, Pakistan has (China) A loan agreement of $ 2.3 billion has been signed with Pakistan has China the banks of (Banks) This agreement has been signed with the consortium of The country’s foreign reserve is decreasing and the currency (Currency) There is also a sharp decline in The loan is expected to provide relief to the economy struggling with the cash crunch. The country in economic crisis has to pay for important imports.
Pakistan’s Finance Minister Miftah Ismail wrote in a Twitter post that this money is expected to be received in a few days. He also thanked the government led by Chinese President Xi Jinping for facilitating the transaction. Giving details, Ismail wrote that a consortium of Chinese banks has signed a loan facility agreement of $ 2.3 billion today (Wednesday). Earlier this agreement was signed with Pakistan on Tuesday.
Pakistan’s currency continues to fall
The loan agreement has given some relief to the crisis-ridden economy of Pakistan. The currency of Pakistan has seen a decline of 34 percent in the financial year 2021-22. On Monday, the exchange rate for one dollar was 210 Pakistani Rupee. Apart from this, the forex reserve kept in the State Bank of Pakistan has also fallen below $ 9 billion on June 10.
The reserve has remained below the import cover level for several weeks. According to the Dawn newspaper, Pakistan currently needs at least $ 37 billion to pay off its debt and other things.
Pakistan owes China $14.5 billion
However, experts believe that the agreement will only increase Pakistan’s habit of repeatedly taking loans from China. According to the Economic Survey of 2021-22, China is the largest country providing financial aid to Pakistan. China currently has a loan outstanding of $ 14.5 billion to Pakistan. Pakistan owes about $ 8.77 billion to three commercial banks and three state-owned banks in China.
At the same time, Pakistan is also waiting for relief from the International Monetary Fund (IMF). The talks between the IMF and Pakistan on the bailout package were stalled. But now it has started again. Let us tell you that in the year 2019, Pakistan had signed an agreement with the IMF. But due to not fulfilling some of the conditions of the agreement, the IMF had stopped the amount received under this package midway.