The situation in pakistan is very bad..!? Help from China..!?

While the economy of India's neighbor pakistan is in dire straits, the IMF is now exploring other lending options after months of struggle to approve the loan plan. Due to the country's poor economy, the government of pakistan has to turn to china again. pakistan has requested an additional 10 billion yuan ($1.4 billion) loan from china over and above its existing loans to ease the country's economic crisis. pakistan has already borrowed 30 billion yuan (US$4.3 billion) from china by making full use of the Chinese currency swap agreement.
Pakistan Finance minister Muhammad aurangzeb made the request during a meeting with China's Vice Finance minister Leo Min on the sidelines of the IMF and World bank annual meetings in Washington. If the Chinese government accepts the request of the Pakistani government and gives a loan, the value of the loan with china alone will increase to about 5.7 billion US dollars. Although the Pakistani government has repeatedly requested china to increase its credit limit (currency swap agreement), china has consistently rejected all requests. But now, after the IMF loan, the pakistan government has again started knocking on the doors of its allies.

The Chinese government recently extended a 30 billion yuan credit facility for an additional three years, and new loan requests are being made in the meantime. The two countries signed a currency swap agreement during Chinese Premier Li Qiang's visit to Pakistan. Pakistan's government has once again knocked on China's door for funding, reflecting Pakistan's dire economic challenges and its financial instability.

At the same time, it cannot be denied that pakistan is an important fish caught in China's debt net. Caught in China's debt trap, many countries are facing bankruptcy and suffering. In this situation, pakistan has asked for a loan again.
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Sowmiya Sriram

28/10/2024 10:23 AM