Pakistan has once again extended a begging bowl in front of China. This time it has requested for an additional loan of 10 billion yuan from China. This demand has been made when the tension between Pakistan and India is at its peak. In such a situation, questions are being raised about the economic condition of Pakistan.
Islamabad: Pakistan has once again extended a begging bowl in front of China amid tension with India. In a new appeal, it has asked for an additional loan of 10 billion yuan (1.4 billion dollars) from China. At the same time, its existing facility of 4.3 billion dollars has ended. Pakistan made this new request for loan public on 27 April. This shows that Pakistan is in no condition to fight a war under any circumstances, because the Pakistani economy has already reached a trough.
Pakistani Finance Ministry issued a statement
Pakistan's Finance Minister Muhammad Aurangzeb made this new loan request to China's Deputy Finance Minister Liao Min during the annual meetings of the IMF and World Bank in Washington. According to a statement issued by Pakistan's Finance Ministry late night on April 26, he sought to increase the limit of the currency swap agreement to 40 billion yuan. Although Pakistan has previously requested extended loan limits, China has rejected such appeals in the past.
Pakistan sought new loan from China
This latest move comes just weeks after Beijing extended the $4.3 billion (30 billion yuan) facility for the next three years. During the recent visit of Chinese Prime Minister Li Keqiang, the two countries signed a currency swap agreement that extended Pakistan's loan repayment period to 2027. Pakistan has fully utilised the existing $4.3 billion trade finance facility under the China-Pakistan arrangement to meet its debt obligations.
Pakistan also extended its begging bowl to IMF
Meanwhile, Aurangzeb said he expects the IMF Executive Board to approve the staff level agreement for the new $1.3 billion climate resilience loan programme and complete the first review of the ongoing $7 billion bailout programme in early May. The approval will enable the disbursement of $1 billion under the programme, which Pakistan secured in 2024 and has been crucial to stabilising its fragile economy.
