Pakistan in talks with China to borrow $1 billion: Report
ISLAMABAD: Pakistan is in talks with a Chinese financial institution to obtain $1 billion as a foreign commercial loan, a media report said on Tuesday.
The report in the Express Tribune said that amid declining foreign exchange reserves, the Pakistan government was in the process of scrutinizing the loan term sheets and the agreement between the two nations was expected to be reached in March.
Pakistan has already obtained $1 billion as foreign commercial loan from the Industrial and Commercial Bank of China (ICBC) in the past three months.
During the last fiscal year, the Pakistan government had borrowed $2.3 billion from three Chinese financial institutions, according to the Finance Ministry publication.
In addition to the borrowing, Pakistan was also expecting to receive $200 million from a Chinese bank immediately to support foreign currency reserves, the daily reported citing sources.
The report said that the Pakistan government had shifted its focus towards easy but relatively expensive sources of financing.
The decision to get $1 billion was taken after the government in February called off the $1-billion Eurobond. The government was ready to float the bond but reversed the decision after financial advisers informed it that the 10-year bond may cost it 7.3 per cent, the sources told the daily.
Kishan Jhanwar Kishan Jhanwar-1 day ago
Please correct headlines at put Pakistan begging in front of China for 1 billion...
Manohar Deep14196 Manohar-Nagpur-1 day ago
Pakistan bik gaya........... sold to China.
King George4342 King George-1 day ago
they are paying 70% of GDP as Interest.
Proud Gujarati4019 Proud-Delhi-1 day ago
Fcking beggars. Always asking for money, be it the US, IMF or World BNk or now new ATM called "China". Way to go Pakistan.
Anilk Khan7490 Anilk Khan-1 day ago
Hope these stupid leaders realize that they are wasting the potential for the next couple of generations going in for these loans. Classic case of a self-serving elite taking care of themselves, and an illiterate, overly religious, superstitious, and emotive population going along though it does not meet their self-interest. The Chinese will be much more harsh than the West when the main Paki export - terrorists - get into action against them.
Dinesh Jain13563 Dinesh Jain-1 day ago
Pakistan will neither repay loan nor pay interest - hope China take this fact into account.
Andy Karuppiah2369 Andy-1 day ago
can use the cash for terror funding and surely will be
a unsustainable debt nation
Chandrajit_20021642 Chandrajit_2002-Bangalore-1 day ago
Take more loans, you baggers Pakistan. Keep taking loans until Pakistan is broken down with no way to repay back.