To help Pakistan boost its economy, cash-rich China gives $2 billion loan

Pakistan might have run out of money but they wouldn’t have to worry too much about it as they will receive over $2 billion loan from its “all-weather” ally China in a bid to enhance its ailing economy, the country’s Finance Ministry added in a statement.

Ministry’s adviser and spokesperson identified as Khaqan Najeeb Khan said that “all procedural formalities” for the transfer of the $2.1 billion (15 billion yuan) loan being provided by the Chinese government have been done, and “the funds will be deposited in the State Bank of Pakistan’s account by Monday, March 25”, the Dawn newspaper reported.

Credits: News18 via Reuters Photo

Cash-strapped Pakistan had previously received $1 billion each from Saudi Arabia and the UAE, as part of the ‘bailout packages’ by the two Gulf nations in order to help strengthen Pakistan capital Islamabad’s decreasing foreign currency reserves.

On September 19, Chinese President Xi Jinping promised greater military cooperation with Pakistan. As per Indian security sources, the growing defence bond between Islamabad and Beijing just goes to show China’s kinship with Pakistan.

As China considers Pakistan as ‘all-weather ally’, both nations will together protect Islamabad’s military and economic interests including Pakistan-occupied-Kashmir, terrorists like Azhar, a security official said.

Chaithanya G
Hailing from Chennai, Chaithanya G is the Managing Director of TheYouth. He has dedicated his whole life to reading and writing.