China agreed to give a loan of almost 3.4 billion dollars to stabilise the economy of Pakistan. This package will help Pakistan to meet the requirements of the international momentum forum under the 7 billion dollars package. China has extended the terms of almost 2.1 billion dollars to the central bank and Pakistan can use this payment while defying repayment. China also gave a loan of almost 3.1 billion dollars to give Pakistan’s economy relief and also to provide financial support.
Boost economy of Pakistan:
The loan will provide financial stability to Pakistan and also will help Pakistan to generate jobs in the country. The loan will help Pakistan to manage its small debts. Pakistan economy is going through a tough phase and through this Pakistan economy will get stable and this will increase job opportunities in Pakistan.
Increase investors confidence:
This will increase investors’ confidence in Pakistan’s economy and it will also help Pakistan to stabilise its financial market. The investment opportunities will boost locals and foreign investors’ confidence and through this Pakistan’s economy will get more investment opportunities.
Boosts foreign exchange:
According to experts Pakistan’s foreign exchange will increase up to 15 billion dollars till June 2025. Through this Pakistan’s economy will meet the IMF target exceeding to an amount of almost 14 billion dollars.
China loan to Pakistan significance:
● Boost investment opportunities in the country
● Help Pakistan economy to compete with the targets of IMF
● job opportunities and also increase foreign exchange
● Help Pakistan’s economy to grow and also will build trust of other countries in Pakistan.
Trust on Pakistan; A necessary requirement and game of change:
Pakistan wants to increase investment in the countries in different sectors including tourism, health sector and many more. This will increase the confidence of other countries in Pakistan and will help the economy of Pakistan to remain stable. Pakistan economy is struggling as IMF set requirements and without achieving them there are further dangers of collapsing the economy and because of that Pakistan is looking for investment in different projects to enhance job opportunities and also to boost confidence of investors who are looking for investment opportunities in Pakistan.
Prime minister Shehbaz Sharif:
Prime Minister Shahbaz Sharif earlier emphasized that our close allies are now looking for investment opportunities in Pakistan. They don’t want to fund it anymore. China’s loan to Pakistan emphasized that China is looking for investment opportunities in Pakistan and therefore they are supporting Pakistan’s economy in this difficult time.
Additional loan from other countries:
Pakistan is expected to get a loan of almost 1 billion dollars from banks of the Middle East to support the economy of Pakistan. This will help Pakistan to deal with increasing inflation and also will help the economy to grow. In addition to that Pakistan is expected to get a loan of almost 500 million dollars in multilateral financing to help the economy of Pakistan.
Enrich history of Pakistan and China relations:
China in history helped Pakistan’s economy to grow and to stabilise the economy and to increase investments in the country. Gwadar port , orange line program and more. In total China gave almost 45 million dollars to Pakistan from the years of 2006 to 2021. China also invested in the tourist sectors of Pakistan to improve the image of Pakistan globally.
Largest bilateral creditor:
China is the largest bilateral creditor of Pakistan. In history almost 92% of Pakistan’s external debt depends on multilateral and bilateral creditors. The loan rollout reflects how strong relations between Pakistan and China are. This will help the economy to meet the IMF’s targets of almost 14 billion dollars by the end of June 2025.
Conclusion:
Many analysts are predicting this a beginning to new relations between Pakistan and China. Many analysts believe it’s high time that Pakistan needs to focus on its own economy rather than to rely on financial aid and help. India on the other hand will face another defeat as Pakistan gets support from China openly and this shows how strong relations between both countries are. This loan will help Pakistan to meet targets of the IMF and also to support the economy. The industrial and commercial bank of China will be involved in the refinancing plan. Ministry of finance officials of Pakistan negotiated the plan with Chinese banks on loan amounts.
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