China comes to Pakistan’s rescue with $1.2 billion bailout loan
China comes to Pakistan’s rescue with $1.2 billion bailout loan: China has increased its economic pull in Pakistan over the past year, providing over $1 billion in loans to help the country stave off from a possible currency crisis.
State-backed Chinese banks have come to Pakistan’s rescue twice already – a $900 million loan in 2016 and $300 million in the first three months of this year – officials told the Financial Times.
China’s financial help shows the risky and unstable stocks of Pakistan’s foreign currency that have been depleted in recent months as imports have increased while exports and inbound remittances fallen. It also demonstrates both countries’ close partnership at a time of strains between Pakistan and the US.
Beijing’s investment in Pakistan under the China-Pakistan Economic Corridor (CPEC) is slated to reach $62 billion from $55 billion after China approved more projects in different sectors including the development of industrial zones.
However, despite of the expected benefits Pakistan will reap from the deal, CPEC infrastructure is poised to further deplete the foreign currency stocks, used to pay contractors and suppliers, the Financial Times noted.
Figures from the State Bank of Pakistan revealed that Pakistan’s net reserves dropped to $17.1 billion at the end of February from $18.9 billion at the end of October and $25 billion several years ago. This has caused Pakistan to seek emergency loans from outside sources to pay off previous debts made in foreign currencies.
Meanwhile, a brokerage house estimated that the south Asian country is entitled to pay Beijing up to $90 billion in three decades for the $50 billion worth of loan and investment portfolio China rendered to Pakistan, but the amount could increase if more projects are added.
“Average annual repayment of CPEC will be $3 billion. [However, in medium term] between fiscal year 2020-25, it will range between $2-$5.3 billion with average repayment of $3.7 billion,” Saad Hashemy, an analyst from Topline Securities said.
China comes to Pakistan’s rescue with $1.2 billion bailout loan
About HumSub TV
Introduction
HumSub TV is Pakistan’s leading forwarding-thinking, edutainment channel, aimed at promoting and upholding peace, interfaith harmony and social responsibility within Pakistan through informative and insightful programmes and documentaries; analytical interviews on issues pertaining to social, economic, legal and environmental set-up; dedicated shows to canvass and thereby promote the culture and heritage of Pakistan and in-depth coverage of national and international news.
HumSub TV is the first channel and thus a pioneer within its own right that mainly focuses on emphasising the “Rights” as well as the “Obligations” of the citizens in light of the Constitution of Pakistan, numerous International declarations signed by the Government and various laws that have been promulgated over the years but are not in the knowledge of the common citizen.
HumSub TV also aims to enter into bilateral agreements with other countries to promote not only their culture, heritage and tourism, but also their educational and medical facilities.
Following the successful launch of HumSub TV’s head office in Blue Area, Islamabad; the bureau office has been set up in Lahore.
Vision
To project positive image building of Pakistan and inculcate nationalism, as per the vision of the founder of the nation, Quaid-e-Azam Mohammad Ali Jinnah.
Mission
HumSub TV is resolute about the promotion of a pluralistic, inclusive and egalitarian society in Pakistan where all citizens are allowed to contribute to promote interfaith harmony, peace and collective wisdom in the social, political and economic development of Pakistan and to encourage critical and lateral thinking in the society. HumSub TV strives to make a positive contribution to this end.
HumSub TV’s Theme
HumSub TV, Pakistan’s first EDUTAINMENT Channel, has been set up for not only those audience residing in Pakistan or overseas but the international community on the whole. The vision of the channel is to project positive image building of Pakistan and inculcate nationalism as per the vision of the founder of the nation.
HumSub TV strives to make a positive contribution to this end by promoting pluralism, inclusiveness and egality in Pakistan and give voice to the suppressed. It endeavors to act as a positive catalyst for social change and Pakistani nationalism. It envisions providing a platform for airing critical and lateral thinking and collective wisdom by inviting positive minded intellectuals and opinion forming individuals for the promotion of interfaith harmony and peace in the social, political and economic development of Pakistan.
Whereas the channel airs upbeat edutainment programmes, it, nonetheless, has the primary objective of countering negative anti-Pakistan regional and international propaganda as well as advancing fundamental rights as encapsulated in the Constitution of Pakistan.
For More News:
Visit HumSub TV