China 2 4 billion loan: The finance minister of Pakistan, Ishaq Dar, said on Thursday that China has given them a big loan of $2.4 billion. This will help Pakistan, which doesn’t have much money, for two more years. This move is really important in helping Pakistan get through a really bad economic crisis.
Beijing giving Pakistan more time to pay back their loans is really helpful because Pakistan doesn’t have a lot of money from other countries to pay for the things they need to buy.
On a social media site called X, which used to be called Twitter, Ishaq Dar shared that the Chinese EXIM Bank has extended the “main amounts” of the $2.4 billion loan. Borrowed money was due in
2024–2025. Pakistan will now just pay for borrowing for two years.
China and Pakistan are longtime buddies. They helped Pakistan avoid financial crisis this year. However, citizens are worried about repaying China’s loans.
Pakistanis worry about borrowing too much, but the government says extending the loan is a smart financial move. Something happened after the IMF paid Pakistan’s central bank $1.2 billion to avert bankruptcy. Pakistan’s foreign aid, which had dropped to $4 billion, was boosted by this swift surge.
Wow, guess what? Pakistan’s foreign exchange reserves have gone up a lot and are now at $14 billion. That’s a big improvement!
The IMF loans were stopped since December because Pakistan didn’t follow the rules of the previous $6 billion bailout. So, Pakistan asked for money from their friends like China, Saudi Arabia, and the United Arab Emirates.
China has generously funded the China-Pakistan Economic Corridor. This project involves building roads, electricity plants, and farming.
China sent Pakistan a lot of money, which assisted them through their economic crisis. Pakistan and the IMF reached a $3 billion rescue agreement in June, improving matters.
On Wednesday, Prime Minister Shehbaz Sharif claimed Pakistan no longer faces a cash shortage.
Since April 2022, Prime Minister Sharif has blamed Imran Khan’s alleged corruption for Pakistan’s poor economy.
Prime Minister Sharif will likely resign next month as the current government nears its five-year tenure. This will allow new elections for representatives. Temporary government will oversee these
elections. This development will affect Pakistan’s money and politics in the next months.