Cash-strapped Pakistan seeks $5bn loans from China, Russia and Kazakhstan

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Amid the economic crisis in the country, Pakistan is seeking a loan of around $3 billion from China. Besides China, Pakistan is also seeking loans from Russia and Kazakhstan.

The development comes ahead of Prime Minister Imran Khan’s scheduled visit to Beijing this week.

Prime Minister Khan will travel to the Chinese capital to attend the opening ceremony of the Beijing 2022 Winter Olympics on February 3. During his visit, he will also meet with senior Chinese officials on the sidelines of the bilateral talks.

It has been understood that the Pakistani government has decided to apply for a loan worth $5 billion. Ready to search from China, Russia and Kazakhstan. A loan of 3 billion dollars must be requested from China and 1 billion dollars each from Kazakhstan and Russia.

The loan from China will be used to stabilize foreign exchange reserves and the loans from Russia and Kazakhstan will be spent on the Main Line One (ML1) railway project.

Pakistan’s Ministry of Economic Affairs has prepared a borrowing plan as the $3 billion loan agreement with China will be signed during Prime Minister Khan’s visit to China. The initial agreement with China for the loan will be for one year.

Agreements with Kazakhstan and Russia should also be finalized and signed soon.

Meanwhile, Prime Minister Khan is due to leave for China for a three-day visit on Thursday and some federal ministers will also accompany him.

The Pakistani Prime Minister will hold important meetings during his visit to China and meet with Chinese President Xi Jinping.

Prime Minister Khan is also expected to hold bilateral meetings with other dignitaries at the Winter Olympics.

It is expected that during the premier’s visit to China, CPEC and mutual security issues will be discussed, and the regional situation will also be on the agenda.

The issue of China providing loans worth $3 billion to Pakistan will also be finalized and is expected to be signed during Prime Minister Khan’s visit to China.

Pakistan’s Ministry of Economic Affairs, in a rebuttal to media reports asking for a loan, said no such proposal was being processed in the Economic Affairs Division for a loan. $3 billion from China and $2 billion from Russia and Kazakhstan.

WATCH | Pakistani Prime Minister Imran Khan to visit China Feb. 3-5 amid growing economic crisis

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