Pakistan Economic Crisis: China became the support of poor Pakistan, gave a loan of $ 700 million, Shehbaz trapped in Dragon’s debt trap – pakistan economic crisis china to provide huge debt to shehbaz sharif government amid severe crisis
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Giving this information on Twitter, Pakistan’s Finance Minister Ishaq Dar termed the Chinese currency as a ‘lifeline’ for Pakistan. He wrote in his tweet, ‘Alhamdo lillah! State Bank of Pakistan received an amount of $700 million from China Development Bank today. A few days back Dar had told that China Development Bank has approved a loan of $700 million for Pakistan. Its formalities have been completed.
Increasing debt burden on Pakistan
This loan will strengthen Pakistan’s dwindling foreign exchange reserves but will further increase the burden of foreign debt on the common man. The amount may reach the State Bank of Pakistan this week. The Shehbaz government wants to increase the country’s foreign exchange reserves but it has become very difficult for the government after getting a blow from the International Monetary Fund (IMF). That’s why Pak PM Shahbaz Sharif is now asking for loan from friendly countries.
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Pakistan’s target is 2 billion dollars
According to Pakistani media The News, Pakistan is targeting to take a total loan of up to $ 2 billion from China by the end of February or by the first week of March 2023. The Chinese amount will ease the pressure on the Pakistani economy, which is struggling due to the pandemic, floods, foreign debt and political instability. However, Shahbaz Sharif himself admitted that he had to face ’embarrassment’ in seeking loans from friendly countries. He had said that the loan is not the solution to the Pakistani crisis as it has to be returned.
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