pakistan imf loan default risk, will china reward action on imran khan? IMF did not give loan, dragon will save Pakistan
Pakistan has to repay foreign debt of $ 3.7 billion by the end of this month and by June. That too when Pakistan’s total foreign exchange reserves are only $4.30 billion. According to the report of the British newspaper Financial Times, Pakistan expects China to rollover a loan of $ 2 billion next month. Pakistan has to repay this loan next month. Two Pakistani officials have said that China has promised that it will help repay the loan of $ 2.3 billion in June.
These officials said that if China allows these loans to be refinanced, then Pakistan will be saved from defaulting immediately. Earlier this year, China had rolled over some loans. The Foreign Minister of China had insisted that his country would provide financial assistance to Pakistan. Analysts say that Pakistan is expected to get a big relief from this. Till now Pakistan was pleading for loan from IMF but till now it has not got any success. Pakistan is currently battling with terrible inflation.