China strengthens cooperation with Pakistan, offers major financial packages

Chinese leader Xi Jinping has promised Pakistani leaders he will continue to help his government stabilize Pakistan’s financial situation and inject “new impetus” into the strategic partnership.

President Xi Jinping made the remarks during a meeting with Pakistani Prime Minister Shebaz Sharif during his visit on November 2. Joint statement Commit to expanding socio-economic cooperation.

President Xi Jinping urged the China-Pakistan Economic Corridor (CPEC) to move forward and become a “model of high-quality Belt and Road cooperation.” statement Issued by the Ministry of Foreign Affairs of China.

The two sides agreed to accelerate the construction of the Gwadar port in Balochistan, Pakistan, and the development of Pakistan’s Main Line 1 (ML-1) project and the Karachi Circular Railway project.

“China hopes that by working with Pakistani partners to advance industrial cooperation, we can support provinces with strong industries and provide a healthy business environment for the Pakistani side,” Xi said.

Sharif said Pakistan was ready to cooperate with China, saying, “The world cannot operate without China and China’s development cannot be isolated or contained by any force.”

The $60 billion CPEC is part of the Belt and Road Initiative (BRI, also known as “Belt and Road”) launched by President Xi Jinping in 2013. A trap for a small country”.

China proposes financial bailout

Pakistan’s Finance Minister Ishak Dar said after the summit that China had agreed to increase more than $4 billion in sovereign loans, $3.3 billion in commercial bank loans and about $1.45 billion in currency swaps. .

Dar also said Pakistan will receive $4.2 billion from Saudi Arabia, including a $3 billion financial package and $1.2 billion in stationary oil facilities, ARY News report.

“China and Saudi Arabia assured the Pakistani delegation during their recent visit that they would handle Islamabad’s financial demands until June 2023,” he told reporters on Nov. 5.

China’s foreign ministry spokesman Zhao Lijian commented on Dal’s allegations. said China supports Pakistan’s efforts to achieve financial stability “within our capabilities” and will continue to do so.

Pakistan’s external debt is Over $130 billion, of which $30 billion owes China. Pakistan has asked China to roll over her $6.3bn debt maturing within the next eight months, The Indian Express report.

The country was hit by unprecedented flooding last month due to heavier-than-usual rains from the monsoon that started in June. More than 30 million people were affected and crops and bridges were destroyed.

during an interview with financial times On October 19, Sharif said Pakistan needed “huge amounts of money” to rebuild flood-damaged infrastructure and his country wanted “additional funds” rather than debt rescheduling. said.

“There is a gap between what we ask for and what we receive, and a very serious gap is widening every day,” he told the press.

Aldogra Fredry


Aldgra Fredly is a Malaysia-based freelance writer covering Asia Pacific news for The Epoch Times.