China To Provide $6 billion Aid To Pakistan To Minimise Its Dependence On IMF Bailout

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New Delhi: China reportedly agreed to provide $6 billion in aid to Pakistan to minimise the cash-strapped country’s dependence on an IMF bailout package as Prime Minister Imran Khan held talks with Chinese President Xi Jinping.

Khan, who is here on his maiden visit, met Xi in the Great Hall of People where the two leaders also held one-on-one meeting besides delegation-level talks, Pakistani media reports said.

Pakistan is expected to receive USD 6 billion economic package from China during the visit, Geo TV quoted sources as saying. A loan of USD 1.5 billion is also expected to be offered, along with an additional package of USD three billion for the China-Pakistan Economic Corridor (CPEC), the report said.

The loan and the investments were reportedly part of the USD 6 billion package. There is no official comment from Beijing yet on the report.

Pakistan’s government has “inherited a very difficult economic situation,” Khan told Xi.

“Unfortunately our country is going through a low point at the moment with two very big deficits, a fiscal deficit and a current account deficit,” he said. Xi assured Khan that China considers its relations with Pakistan a “diplomatic priority”.

“China has always placed Pakistan as a diplomatic priority for China, supported Pakistan’s safeguarding of national independence, sovereignty, and territorial integrity, and supported the new Pakistani government’s smooth running of the government and advancement of national construction,” the Chinese President said.

China’s expected assistance is the second USD 6 billion package which Khan has managed to obtain in the last few weeks as Pakistan reeled under severe financial crisis.

During his visit to Saudi Arabia last month, Riyadh committed USD 6 billion funding which included USD 3 billion deferred payment for oil imports.

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