Beijing: China, which has offered a USD 9 billion bailout package to Pakistan, pledged more support for the cash-strapped nation, saying that it has done its “utmost” to stabilize the financial situation of its all-weather ally and will continue to do so.
Pakistan had been engaging with China and Saudi Arabia for financial support, including rolling over maturing loans as part of arrangements for about USD 35 billion putouts against debt and liabilities during the current fiscal year.
Pakistan’s Finance Minister Ishaq Dar last said that Islamabad would be getting about USD 9 billion from China and USD 4 billion from Saudi as the government tries to steady the nation’s weak economy.
Quoting Xi Jinping, Dar said the Chinese President in his meeting with Prime Minister Shehbaz Sharif during his recent visit to Beijing on November 3 had assured him, “don’t worry, we will not let you down”.
Replying to a query on his reactions to Dar’s assertions, Chinese Foreign Ministry spokesman Zhao Lijian told a media briefing here, “China has done its utmost to help Pakistan stabilize its financial situation. We have been doing so, and we will continue to do so.”
Pakistan owes Paris Club countries a combined sum of around USD 10.7 billion. The Paris Club is a group of officials from major creditor nations whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.
According to the International Monetary Fund (IMF), Pakistan’s total non-Paris Club bilateral debt currently stands at about USD 27 billion, of which Chinese debt is about USD 23 billion.
During Pakistan Prime Minister Shehbaz’s visit to Beijing, the Chinese leadership promised to roll over USD 4 billion in sovereign loans, refinance USD 3.3 billion commercial bank loans and increase currency swap by about USD 1.45 billion.
