As the country makes desperate efforts to stabilise the forex reserves, the federal government on Monday decided to take $5 billion loans from China, Russia, and Kazakhstan.
According to report in The News, Pakistan is expected to get $3 billion from China and $2 billion from Russia and Kazakhstan.
The 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.
Sources indicate Pakistan plans to borrow $3 billion from China. Pakistan to borrow $1 billion each from Russia and Kyrgyzstan for expanding the road network sources say. Altogether 5b$. Anyone else who wants to lend? Pls raise your hand.
— Syed Talat Hussain (@TalatHussain12) January 31, 2022
Islamabad is planning to spend $2 billion on the ML-1 Railways project while $3 billion from China will be used to strengthen dwindling forex reserves.
Initially, the finance ministry sources added, the loan agreement with China will be signed for one year period.
The development came amid Islamabad’s hectic efforts to revive the stalled $6 billion loan programme of the International Monetary Fund as all the prior conditions have been met in this regard before the Executive Board’s meeting scheduled on February 02.
Meanwhile, the Ministry of Economic Affairs issued a rebuttal, saying that no such proposal was under process.