China has given it financial assistance of $ 1 billion to handle Pakistan's decaying economy. Reuters, quoting two sources from the Pakistan Finance Ministry, Reuters that China has given $ 1 billion to increase the weak foreign exchange reserves of the South Asian country. This news came at a time when Pakistan is struggling to get another bailout package from the International Monetary Fund (IMF) that is struggling with a financial crisis.
In recent times, Pakistan seems to be overtaking China's outstanding debt in an attempt to bail out its economy. Pakistan's foreign exchange reserves had fallen from $ 16.4 billion in May 2017 to just $ 9.66 billion last week. In such a situation, Islamabad was talking about taking loans from China to one billion and two billion dollars to strengthen its foreign exchange reserves.
On the financial assistance received by China, the sources of the finance ministry said, "Yes, it is in our favour." Another source said that with this loan, in the financial year ending in June, Pakistan's lending has gone above $ 5 billion.
According to the Reuters report, according to the documents of the Finance Ministry, in the first 10 months of the financial year, China had given Pakistan $ 1.5 billion in bilateral debt. Ministry officials told Reuters that during this period, Pakistan has increased its commercial loan from Chinese banks by $ 2.9 billion.
Beijing is trying to strengthen Pakistan's economy to strengthen its project CPEC. Although analysts believe that China's help will not be enough for Pakistan. Analysts believe that after the elections in the country on July 25, the new government will demand another bailout package from the IMF.