Pakistan is on the verge of securing new financial support, seeking $600 million in loans from two major Chinese banks, the Industrial and Commercial Bank of China (ICBC) and the Bank of China. The federal government is in the final stages of negotiations with both banks, each for a $300 million loan, with the deals expected to be finalized next month, as reported by Express Tribune.
In collaboration with China, Pakistan is diligently working on completing the technical formalities for the $600 million loan. It’s worth noting that the interest rates on these new commercial facilities are anticipated to be higher due to the prevailing high global interest rate environment.
Simultaneously, Pakistan is in talks with the International Monetary Fund (IMF) to enhance its credit rating. After reaching a staff-level agreement with the IMF, Pakistan aims to re-engage with non-Chinese banks. These discussions are crucial as several banks had previously refrained from engaging with Pakistan due to its unfavorable credit ratings and increasing external sector risks.
China has played a significant role in supporting Pakistan’s financial stability, providing a total of $21.2 billion in loans since 2000. These funds have been instrumental in preventing defaults and bolstering the country’s dwindling foreign exchange reserves.
Stay tuned for further updates on Pakistan’s financial developments and its efforts to strengthen its economic standing on the global stage. Also read Pakistan’s Fakhar Zaman Smashes World Cup Record with Fastest Century
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