To bridge the funding gap, Pakistan needs $6 billion in fresh debt. But despite repeated requests from Pakistan, Saudi Arabia, United Arab Emirates and Qatar are not giving this loan to Pakistan. Sources told Pakistani newspaper The Express Tribune that now Pakistan is making renewed efforts to normalize its relations with China. Pakistan’s Foreign Secretary is on a visit to Beijing and the Pakistani Army Chief may also visit China next week.
China gave financial help to Pakistan
Before leaving for Beijing, the Foreign Secretary met Pakistani Finance Minister Ishaq Dar. China has recently given a loan of $1.2 billion to Pakistan. According to Dar, as part of the total $2 billion, $500 million is going to be received by China from Pakistan soon. However, China is yet to roll over $2 billion in SAFE deposits, which will mature by the end of March. A $2 billion loan given by China’s State Administration of Foreign Exchange is rolled over every year because Pakistan is unable to repay it.
Poor Pakistan, Munir’s army is rich, business of 100 billion dollars
Shahbaz is pleading for help from China
According to Pakistani officials, Shehbaz Sharif has formally requested the Chinese government to roll over both the matured loans. These loans are taken for budget support, augmentation of foreign exchange reserves and financing of projects. After facing disappointment from the friendly Muslim countries, Pakistan now rests all its hopes on China. This is the reason why from the Foreign Secretary to the Pak Army Chief are making rounds of Beijing.