Amid devastating economic condition, Pakistan has decided to seek a loan of around $5 billion from China, Russia and Kazakhstan.
According to local media, the country plans to borrow $3 billion dollars from China and $2 billion from Russia and Kazakhstan. The News International citing sources reported that the country's Finance Ministry has finalised the plan for the loan and an agreement in this regard will likely be signed with China during Prime Minister Imran Khan's visit to Beijing next month.
Imran Khan is set to depart for Beijing on February 3. The Pakistani Prime Minister will attend the inaugural session of the Beijing Winter Olympics 2022.
On Tuesday, a final meeting of the top Pakistani officials will take place to shape the agenda of Imran Khan's visit.
Beijing has already given around $11 billion with Islamabad in the shape of commercial loans and foreign exchange reserves support initiatives, including $4 billion in SAFE deposits. The Chinese money is part of Pakistan's current official foreign exchange reserves recorded at $16.1 billion, said The Express Tribune.
Pakistan, in the last fiscal year, paid more than Rs 26 billion in interest cost to Beijing. Notably, Pakistan paid the heavy amount only for using a $4.5 billion Chinese trade finance facility to repay the maturing debt.
It comes as Saudi Arabia last month granted a loan of $3 billion to Pakistan. The loan has been consumed by the country and the foreign exchange reserves that before the Saudi injection stood at $15.9 billion have already fallen to $16 billion by January 21, according to The Express Tribune.