World / Pak to receive USD 2.1 loan from China by March 21

India TV : Mar 23, 2019, 10:41 AM

Cash-strapped Pakistan will receive over USD 2 billion loan from its "all-weather" ally China by Monday to provide a boost to its ailing economy, the Finance Ministry has announced. Pakistan has received USD 1 billion each from Saudi Arabia and the UAE, as part of the bailout packages by the two Gulf nations to help shore up Islamabad's dwindling foreign currency reserves, Saudi Arabia's assistance was part of USD.

Following a meeting in Beijing between Chinese Premier Li Keqiang and Prime Minister Imran Khan in November 2018, China said that it was willing to offer assistance to Pakistan to help it weather its current fiscal woes but the terms of such aid were still being discussed.

Shortly after, Chinese Consul General Long Dingbin had said during an interview that in order to "boost Pakistan's economy", Beijing was investing in multiple sectors and launching business ventures instead of providing loans.

Earlier, Pakistan officials said that Islamabad would seek around USD 8 billion from the IMF which would be the biggest package by the Fund for Islamabad.

Although the Pakistan government has secured a breathing space from Saudi Arabian and the UAE loans, an IMF programme is essential to unlock access to resources from other multilateral lenders like the World Bank and the Asian Development Bank, as well as the global capital markets.