Earlier in the week, on Caretaker PM Anwaarul Haq Kakar’s directives, the PM office posted a letter to China’s Prime Minister Xi Jinping requesting a $2 billion loan. As per the letter, the loan (if granted) will be cleared in one year under an MOU signed between the two neighboring countries.
As per media reports, the letter contains a request, as well as a ‘thank you’ note to China for being a valuable neighbor to Pakistan. However, not just China, the same demand has been made to the UAE as well stating the reason to take on the economic crisis and bring stability to the country.
Payment extension plan for Pakistan
It must be noted that the governments of UAE and Pakistan are between setting the extension of repayment before releasing the requested billions. On the other hand, China has agreed to extend the duration of the loan and showed willingness for Pakistan to work with Beijing to hold up on the financial crisis.
According to the caretaker PM, Pakistan is about to pay an IMF installment, which was due earlier but situations these days are not helping the country to fulfill such commitments. In September, last year, Pakistan’s rate of inflation was up by 31.4 percent and currently, it is at 39.4 percent, according to the World Bank.
Also read: Germany Announces €2 Million Aid To Help Pakistan Combat Food Challenges
Facing a hard deficiency in energy, Pakistan is looking toward Russia to support by providing fuel, oil, and petroleums at low rates. However, a consignment of liquified petroleum gas has already been delivered to Pakistan from Moscow this past year.
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