‘Proof of great friendship’: China to send Pakistan another $1.3 billion

[beijingwalker]

‘Proof of great friendship’: China to send Pakistan another $1.3 billion​

Updated: 04 Mar 2023, 09:55 AM IST

Pakistan's Finance Minister Ishaq Dar (R) speaks during a press conference in Islamabad on February 10, 2023. (Photo by Aamir QURESHI / AFP) (AFP)
The fund will be used to help shore up Pakistan’s foreign exchange reserves.

Pakistan is set to receive a $1.3 billion financing boost from the Industrial and Commercial Bank of China Ltd (ICBC) in the coming days, according to the country’s Finance Minister, Ishaq Dar. Speaking at a press conference in Islamabad on March 3, Dar confirmed that all formalities had been completed and that documentation for the process was now complete.

The fund will be used to help shore up Pakistan’s foreign exchange reserves as the country faces challenging economic conditions. Dar confirmed that it was possible that $500 million could be received by Monday or Tuesday of next week, with a further $500 million to be provided within the following 10 days.

Dar reported that the State Bank of Pakistan (SBP) had $3.82 billion in foreign exchange reserves, which, when added to the sums held by commercial banks, totaled almost $9.26 billion.

“There will be a further increase in this. I think China has given proof of great friendship," Dawn quoted Dar as saying.

He said he was confident that the SBP reserves would have $10 billion and the national reserves around $16 billion by June 30. As per Dar, Pakistan’s requirement for the next three to four years is for $16 billion.

Despite the difficult economic climate, Dar was optimistic about Pakistan’s ability to weather the storm, stating: “We have never defaulted and we won’t now. Yes, we were in a precarious situation and are going through it currently."

He went on to defend the current government’s handling of the crisis, stating that its “principled decision" to prioritise the state’s interests over political interests was the “right decision". Dar criticised opposition leader Imran Khan, accusing him of being “selfish" and focused only on criticising the government rather than working together to address the country’s issues.

Dar also took the opportunity to discuss the economic indicators that Pakistan had faced in recent years, blaming “mismanagement and bad governance" for the current situation. He attributed catastrophic floods in 2022 as being a major cause of financial losses, with over $30 billion lost as a result. He also cited global inflationary pressure as a major reason for the country’s rising inflation levels.

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[PradoTLC]

So basically no skill on your part?

When are you resigning sorry running away ?

 

[N.Siddiqui]

We can trust a Chinese source but not this liar fin. minister. As crooked as it gets.

He was coming with media talks Pakistan is getting that much amount and this, Zilch result. This moron need to sacked and put on Exit control list, a certified money launderer.

 

[beijingwalker]

The west always bashes China for getting Pakistan into a debt trap, but can they point out just one case which China squeezed Pakistan for paying back any Chinese debt? Pakistan suffered massive flood and fianancial crisis recently and what the west expects China to do? just being a bystander with crossed arms? Even many Pakistanis are not happy with their current government China still needs to help, cause if Pakistan's financial system totally collapsed it'll be the people who suffer the most, the ensuing unimaginable inflation will hit the poorest the hardest.
The west can keep enjoying their mouth comfort by attacking China for propping a failing government, they couldn't care less about how average people may suffer in Pakistan.

 

[-=virus=-]

is this an interest free loan ?

 

[beijingwalker]

is this an interest free loan ?

For whatever, did you ever see even once that China demanded Pakistan to pay them back?
If you are a lender, if a borrower never pays you back, would you still lend money to them further? You still believe China designs to make interest money off Pakistan?

 

[-=virus=-]

For whatever, did you ever see even once that China demanded Pakistan to pay them back?

So a total 'no riders' freebie loan without expecting to be paid back, even without any interest ?

My oh my, such benevolence !

 

[beijingwalker]

So a total 'no riders' freebie loan without expecting to be paid back, even without any interest ?

My oh my, such benevolence !

Of course China expects borrowers to pay China back, but China never squeezed Pakistan to pay back the money when Pakistan is obviously not able to do so. the realtions between the two countries is not only about money.

 

[HAIDER]

‘Proof of great friendship’: China to send Pakistan another $1.3 billion​

Updated: 04 Mar 2023, 09:55 AM IST

Pakistan's Finance Minister Ishaq Dar (R) speaks during a press conference in Islamabad on February 10, 2023. (Photo by Aamir QURESHI / AFP) (AFP)
The fund will be used to help shore up Pakistan’s foreign exchange reserves.

Pakistan is set to receive a $1.3 billion financing boost from the Industrial and Commercial Bank of China Ltd (ICBC) in the coming days, according to the country’s Finance Minister, Ishaq Dar. Speaking at a press conference in Islamabad on March 3, Dar confirmed that all formalities had been completed and that documentation for the process was now complete.

The fund will be used to help shore up Pakistan’s foreign exchange reserves as the country faces challenging economic conditions. Dar confirmed that it was possible that $500 million could be received by Monday or Tuesday of next week, with a further $500 million to be provided within the following 10 days.

Dar reported that the State Bank of Pakistan (SBP) had $3.82 billion in foreign exchange reserves, which, when added to the sums held by commercial banks, totaled almost $9.26 billion.

“There will be a further increase in this. I think China has given proof of great friendship," Dawn quoted Dar as saying.

He said he was confident that the SBP reserves would have $10 billion and the national reserves around $16 billion by June 30. As per Dar, Pakistan’s requirement for the next three to four years is for $16 billion.

Despite the difficult economic climate, Dar was optimistic about Pakistan’s ability to weather the storm, stating: “We have never defaulted and we won’t now. Yes, we were in a precarious situation and are going through it currently."

He went on to defend the current government’s handling of the crisis, stating that its “principled decision" to prioritise the state’s interests over political interests was the “right decision". Dar criticised opposition leader Imran Khan, accusing him of being “selfish" and focused only on criticising the government rather than working together to address the country’s issues.

Dar also took the opportunity to discuss the economic indicators that Pakistan had faced in recent years, blaming “mismanagement and bad governance" for the current situation. He attributed catastrophic floods in 2022 as being a major cause of financial losses, with over $30 billion lost as a result. He also cited global inflationary pressure as a major reason for the country’s rising inflation levels.

Business News Today: Read Latest Business News, Live India Share Market News, Finance & Economy News | Mint

Business News: Read latest Business News headlines, LIVE share market news and updates, financial, economic and banking news from India & across the World on Mint.

www.livemint.com

Its no new loan, its rollover by Chinese bank. Dar is one pathetic liar. Later he tweet its rollover. Pakistan recently returned this money to Chinese bank. Pak will get 3 installments.

 

[-=virus=-]

Of course China expects borrowers to pay China back, but China never squeezed Pakistan to pay back the money when Pakistan is obviously not able to do so. the realtions between the two countries is not only about money.

In what ways do Chinese loans trump, or are better than just going to the IMF as far as Pak is concerned ?

Also, what is that relation about, then ? Apart from India, which both countries have territorial disputes with, one might argue.

China are a predatory loan shark, exploiting the hell out of poor Africa and now a Pak in distress.

 

[Cheepek]

is this an interest free loan ?

Loan by a commercial bank... Baaki samajhdar ko ishaara kaafi

 

[beijingwalker]

China are a predatory loan shark, exploiting the hell out of poor Africa and now a Pak in distress.

When China was not in the picutre and western countries were the only source of loans around the world, did you call them "loan sharks" or investors?

 

[-=virus=-]

When China was not in the picutre and western countries were the only source of loans around the world, did you call them "loan sharks" or investors?

Its a most unnatural of alliances, based purely on current day convenience and a convergence of regional geopolitical goals but I'm afraid its a losing bet. Pak today are, unfortunately, stuck in quicksand... China is the devil's helping hand.

Idiot IK is to blame for putting all their eggs in the Chinese basket and joining that other 'quad'

China, DPRK, Iran, Pakistan ... good luck out there.

big daddy China will be fine, the rest, however.... :|

oh well

 

[Jeeten Parikh]

For whatever, did you ever see even once that China demanded Pakistan to pay them back?
If you are a lender, if a borrower never pays you back, would you still lend money to them further? You still believe China designs to make interest money off Pakistan?

It is absolutely China's right to expect payment of interest and principal. Pakistan is the fool getting to such agreement terms where besides interest, they end up obligated to award contract to Chinese company and worst of all, sign up for guaranteed returns.

Shylock took a pound of flesh on default. China took a port from Pakistan's body. But all legal.

 

[beijingwalker]

Its a most unnatural of alliances, based purely on current day convenience and a convergence of regional geopolitical goals but I'm afraid its a losing bet. Pak today are, unfortunately, stuck in quicksand... China is the devil's helping hand.

Idiot IK is to blame for putting all their eggs in the Chinese basket and joining that other 'quad'

China, DPRK, Iran, Pakistan ... good luck out there.

big daddy China will be fine, the rest, however.... :|

oh well

China is the biggest lender in the world, not only to DPRK or Iran, US owes China's the most. EU also owe China a lot.