Islambad
Pakistan formally requested an additional loan of 10 billion yuan (approximately USD 1.4 billion) from China on Sunday, citing the full utilization of its existing 30 billion yuan (USD 4.3 billion) trade facility. Finance Minister Muhammad Aurangzeb made the request during a meeting with China’s Vice Minister of Finance Liao Min on the sidelines of the IMF and World Bank annual meetings in Washington.
Aurangzeb urged the Chinese government to increase the limits under the currency swap agreement to 40 billion yuan, which would raise the total facility to around USD 5.7 billion. This request comes less than two weeks after China extended the current USD 4.3 billion facility for an additional three years.
Pakistan has fully consumed the previous loan facility under the China-Pakistan currency swap agreement, which was aimed at helping the country manage its debts. Earlier in October, Chinese Premier Li Qiang visited Pakistan, marking the first visit by a Chinese premier in 11 years. During this visit, he met with President Asif Ali Zardari, reaffirming the commitment to strengthen strategic cooperation across various sectors, including economic investment and regional connectivity. Both leaders emphasized the importance of expediting the implementation of China-Pakistan Economic Corridor (CPEC) projects, which are crucial for Pakistan’s economic development.
