Not IMF, China will help!
Pakistan’s newspaper Dawn quoted Bank of America as saying, ‘The relations between China and Pakistan are very close. In such a situation, the hopes increase for China that it will help its old partner. According to the bank, in the coming times, Pakistan can get relief only from China because it is the biggest creditor. According to Bank of America, Pakistan will have to stop the repayment of loan for some time because it is not going to get help from IMF soon. The team of economists, which includes Kathleen Oh, says it looks unlikely to avoid a moratorium unless payments are made quickly. He says that if and when Pakistan will get the next installment from the IMF, it is still up in the air.
worst economic crisis
Pakistan is currently going through its worst economic crisis in decades. The government has implemented a number of policy measures, including tax hikes, power tariff hikes and highest interest rates in 25 years. The aim of the government of Pakistan is to implement these measures and get a loan of $ 6.5 billion from the IMF as soon as possible, which has been stuck for many months. Finance Secretary Hameed Yaqoob Sheikh said last week that an agreement was likely to be reached in the next few days. Although it is also true that Pakistan has missed reaching such an agreement only last month.
Highest Chinese debt on Pakistan
According to the IMF, Pakistan’s external debt is $126 billion, of which $30 billion is Chinese debt. This amount is three times more than Pakistan’s $ 7.8 billion IMF loan. While it also has a lot of debt from the World Bank and the Asian Development Bank. The Industrial and Commercial Bank of China has approved a loan of $1.3 billion to Pakistan. This amount is different from the $700 billion that has already been given to Pakistan by China. Recently, the IMF has temporarily increased the loan amount for some member countries by changing the rules. But he has not taken any decision on the ongoing economic crisis in Pakistan.