China-Pakistan Relations / China again became kind to Pakistan, saved its sinking economy with this one help!

China-Pakistan Relations: China has once again supported Pakistan's faltering economy. Providing relief to this neighboring country facing economic crisis, China has rolled over its $ 3.4 billion loan. This move has come at a time when Pakistan is struggling to meet the strict conditions of the International Monetary Fund (IMF). This assistance from China is considered a big relief for Pakistan, as its foreign exchange reserves have touched the important level of $ 14 billion - the minimum limit set by the IMF.

China's trust: Rollover of two major loans

According to the economic report, China has extended the tenure of the loan of $ 2.1 billion deposited with the Central Bank of Pakistan. Along with this, the commercial loan of $ 1.3 billion, which Pakistan had recently repaid, has also been refinanced by China. This step is not only going to support the currency reserves for Pakistan, but it will also increase the confidence of international financial institutions.

Relief from Middle East and global cooperation

Apart from China, Pakistan has also received $1 billion from commercial banks of the Middle East and $500 million from other multilateral institutions. According to a senior government official, thanks to all these cooperations, Pakistan is now close to the currency reserve target set by the IMF.

IMF conditions and path of reforms

Pakistan has received a relief package of $7 billion from the IMF, but strict conditions are also attached to it. These include steps like reforms in the tax system, reduction in subsidies and comprehensive changes in the energy sector. It is not easy for Pakistan to implement these reforms, but these steps are considered necessary for its long-term economic stability.

Struggle to recover from falling currency reserves

Pakistan's foreign exchange reserves have decreased rapidly in the last few years, due to which it had to face difficulties in repaying loans from time to time. The IMF had given clear instructions that the reserves should be at least $14 billion so that financial stability is maintained. With the help of China and the Middle East, this goal now seems possible.

China-Pakistan friendship proved again

This latest development has once again highlighted the strategic friendship between China and Pakistan. When Western financial institutions were entangled in a maze of conditions, China immediately intervened and gave relief to Pakistan. This cooperation will not only provide short-term relief to Pakistan, but will also strengthen its global economic image. Now it is up to Pakistan how it converts this relief into permanent economic reforms.