Chinese Financial Aid to Pakistan

[ghazi52]

,.,.,.

China approves $1.3bn loan rollover for Pakistan:​

March 4, 2023

Industrial and Commercial Bank of China Ltd on Friday approved a rollover of a $1.3 billion loan for cash-strapped Pakistan, which will help shore up its depleting foreign exchange reserves, Finance Minister Ishaq Dar said.

The facility will be disbursed in three instalments. The first one of $500 million has been received by the State Bank of Pakistan, Dar said in a tweet. “It will increase forex reserves,” he said.

The money, which Dar said has been repaid by Pakistan to the ICBC in recent months, is crucial for the country’s economy, which is facing a balance of payment crisis, with its central bank foreign exchange reserves dropping to levels barely able to cover three weeks of imports.

Earlier in the day, Dar had in a press conference, said Pakistan was expecting financing from ICBC.

Pakistan has already received a $700 million loan from China to help boost its forex reserves.

 

[fisher1]

Phew. Pakistan saved from a default.

 

[ghazi52]

.,.,.
A Chinese bank has assured to provide another refinanced $500 million loan in the coming days, bringing the total of commercial loans to $1.7 billion out of the total committed amount of $2 billion.
Another $500 million commercial loan is coming from a Chinese bank,” a top Finance Division official said on Wednesday, adding that it would be completed soon, reported a national daily.
Before moving forward with a staff-level agreement with the International Monetary Fund (IMF), Pakistan is trying to get 100 percent confirmation from donor countries and multilateral creditors

 

[ghazi52]

China deposits another $500m to Pakistan​

March 18, 2023



LAHORE: Pakistan on Friday obtained $500 million as the second payment from the $1.3 billion facility provided by the Industrial and Commercial Bank of China (ICBC).
Senator Ishaq Dar, the Federal Minister for Finance and Revenue, shared the news on Twitter, stating that the State Bank of Pakistan has received the payment in its account, which will enhance Pakistan’s foreign exchange reserves.

This disbursement was made after Pakistan fulfilled the required documentation.\On March 4, ICBC had approved a rollover of a $1.3 billion loan for Pakistan. At the time, Dar said the facility would be disbursed in three instalments, with the first instalment of $500m received by the central bank.

This brings the total of commercial loans up to $1.7 billion out of the total committed amount of $2 billion. Pakistan is currently undergoing a massive liquidity crisis due to a constantly delayed IMF programme.

A day earlier, finance minister Ishaq Dar had admitted that the Fund was asking for the materialisation of commitments made by ‘friendly countries’ with Islamabad, which remains the “only delay” in resumption of the stalled programme.

 

[That Guy]

Temporary measures. They're delaying until elections so when the country inevitably has to declare bankruptcy they can lay the blame on the new government.

 

[epebble]

China deposits another $500m to Pakistan​

March 18, 2023



LAHORE: Pakistan on Friday obtained $500 million as the second payment from the $1.3 billion facility provided by the Industrial and Commercial Bank of China (ICBC).
Senator Ishaq Dar, the Federal Minister for Finance and Revenue, shared the news on Twitter, stating that the State Bank of Pakistan has received the payment in its account, which will enhance Pakistan’s foreign exchange reserves.

This disbursement was made after Pakistan fulfilled the required documentation.\On March 4, ICBC had approved a rollover of a $1.3 billion loan for Pakistan. At the time, Dar said the facility would be disbursed in three instalments, with the first instalment of $500m received by the central bank.

This brings the total of commercial loans up to $1.7 billion out of the total committed amount of $2 billion. Pakistan is currently undergoing a massive liquidity crisis due to a constantly delayed IMF programme.

A day earlier, finance minister Ishaq Dar had admitted that the Fund was asking for the materialisation of commitments made by ‘friendly countries’ with Islamabad, which remains the “only delay” in resumption of the stalled programme.

Good. With this now, Dar may throw away the IMF and its conditionalities like a used napkin and focus on self-sufficiency. What does not kill you makes you stronger.

 

[ghazi52]

.,.,.

In the first 9 months of this fiscal year, FDI from China increased to 319.2 million dollars​

Staff Reporter, Gwadar Pro
May 4, 2023

According to BOI data, in the current financial year, Japan is the second largest investor in Pakistan with $157.3 million, followed by Switzerland with $123.1 million, UAE $102.6 million, USA $59.9 million, Netherlands $53.8 million. million dollars, UK 45.6 million dollars, Turkey 16 million dollars, and Italy 8.6 million dollars while 94 million dollars have been invested by other countries of the world.

Pakistan received the highest amount of 460.1 million dollars in power sector from different countries of the world. The power sector was followed by finance with $248.2 million, oil and gas with $116.2 million, trade with $33.7 million, chemicals with $33.5 million, transport with $25.8 million, and textiles with $13 million. of FDII.

In the financial year 2021-22, China was the top investor in Pakistan with $531.6 million which was 28.47% of the total FDI received by Pakistan from different countries of the world.

Similarly, in fiscal year 2020-21, Pakistan received $751.6 million (41.3 percent) of FDI from China, while in fiscal year 2020 and fiscal year 2018-19, foreign direct investment from China was $130.8 million and $13.119 million, respectively. came.

 

[ThunderCat]

Temporary measures. They're delaying until elections so when the country inevitably has to declare bankruptcy they can lay the blame on the new government.

You probably mean place the responsibility. Because previous government will be the one taking the blame if things keep going wrong.

 

[Sayfullah]

Not Aid but Loans.
Thread title should be corrected.
China benefits off these loans and gives such loans to countries around the world. They benefit China more than the recipient country.

 

[Olympus81]

What’s the interest rate on these loans?

 

[nahtanbob]

What’s the interest rate on these loans?

probably in low single digits

 

[ghazi52]

.,.,

Bank of China opens Islamabad branch​

By Mariam Raheem
Aug 1, 2023

ISLAMABAD.. "The opening of the Islamabad branch of the Bank of China is another milestone in deepening financial and economic cooperation between the two countries and holds great significance in expanding bilateral economic and trade cooperation," highlighted Pakistan's Finance Minister Ishaq Dar on Monday.

Speaking on behalf of the Government of Pakistan at the opening ceremony of the Bank of China branch in Islamabad, the minister congratulated the Bank of China on further expanding its service network in Pakistan.

He added that "the Pakistani government will promote the development of Pak-China cooperation with more firm determination and more effective measures and will continue to consolidate and deepen the all-weather strategic partnership."