Pakistan China Loan: China put one billion dollars in the bowl of poor Pakistan, will get relief

Amid the uncertainty of reviving the International Monetary Fund loan, Pakistan, which is facing financial crisis, has been bailed out by its close friend China. Pakistan has received 1 billion from its close ally China. State Bank of Pakistan (SBP) has confirmed receiving the amount from China without sharing any other details regarding the same. This will add to reserves of about $3.9 billion. Earlier, Finance Minister Ishaq Dar said that Pakistan had last Monday requested China to provide a $1.3 billion commercial line of credit at the earliest.

Pakistan’s economy is on the verge of default. The IMF had agreed to give him $ 6.5 billion in loan assistance in 2019, but out of this, he may not get $ 2.5 billion. Pakistan is looking for an option to keep its economy afloat in case of no IMF help. It is expected that China will give him a bilateral loan of four billion dollars.

IMF’s bailout package did not work

Pakistan’s Finance Ministry in its statement had said that the finance minister updated China’s charge d’affaires about the negotiations with the IMF on the completion of the ninth review. However, surprisingly, despite best efforts, the Pakistani government and the IMF failed to reach a staff-level agreement on a $1.1 billion bailout package aimed at saving the country from bankruptcy.