Pakistan Get Loan from China: Pakistan’s economic condition has been in critical condition for the last few years. Foreign exchange reserves are continuously decreasing, inflation is at a height and the balance of import-export is continuously deteriorating. In such a situation, the country is constantly looking towards international lenders to support its economy.
Due to the strict conditions of the IMF (International Monetary Fund), Pakistan was required to maintain a minimum foreign exchange reserves of $ 14 billion, which was to be completed by 30 June 2025. In view of this deadline, China has come forward and helped Pakistan by giving a loan of $ 3.4 billion. This amount is not just a economic cooperation but also a diplomatic message that China still remains a strategic and economic partner of Pakistan.
Additional assistance received from middle East and other sources
According to the report of Reuters, not only China, but other commercial taxpayers of the Middle East have also come forward in the help of Pakistan. Overall, Pakistan has received an additional $ 1 billion additional loan from commercial sources of the Middle East, while around $ 500 million has been raised from multilateral funding agencies.
The main objective of these efforts is to meet the prescribed conditions of the IMF and increase the foreign exchange reserves to a respectable level. This funding is like a lifeline for Pakistan, because it will not only provide short -term relief to the country, as well as a positive message will go to the international market.
IMF assistance and India’s concerns
Recently, IMF has also given a loan of one billion dollars to Pakistan, which India has expressed its concern about. India believes that this debt can be used to nurture terrorism crossing border. Despite this, the IMF clarified that Pakistan had fulfilled all the prescribed conditions to get a loan. It is necessary to clarify here that the help of IMF is only based on economic data and not on geopolitical anxiety, but India’s concern is not unfounded. Pakistan uses this money in army work.
Will Pakistan be crossed?
A loan of $ 3.4 billion is an immediate relief, but this is not a permanent solution. This loan will be used to stabilize foreign exchange reserves, pay loans and control imports, but can it ensure long -term economic growth? On this, analysts believe that if Pakistan does not pay attention to internal economic reforms, then the dependence of foreign debt will become a permanent problem. Increasing tax base, promoting exports and controlling corruption will be a permanent solution for Pakistan.
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