By Admin 
China Financial Aid to Pakistan: The whole world is aware of how Pakistan’s economic condition is. To support the economy here, China has assured to give a loan of Rs 316604005000 ($ 3.7 billion) to Pakistan next month. With this help of China, Pakistan’s foreign exchange reserves are expected to rise, which is currently $ 11.516 billion.
Loan will be given in yuan, not dollars
However, according to media reports, like last time, China has decided to give this amount not in dollars, but in Chinese yuan. This is because China is not trying to reduce the importance of dollars in its foreign exchange reserves these days, but is emphasizing on the use of other currency. China wants to reduce its dependence on dollars and euros.
China is repeatedly helping Pakistan
According to media reports, earlier China had given a loan of $ 1.3 billion to Pakistan at about 7.5 percent interest rate, which has been returned. This loan was paid by Pakistan between March and April 2024. Apart from this, a $ 2.1 billion syndicated loan from three Chinese banks equal to 15 billion yuan is also going to be matured in June. These include China Development Bank 9 Billion Yuan, Bank of China 3 billion yuan and ICBC also include a loan of 3 billion yuan.
Why Chinese help is necessary for Pakistan?
In a recent meeting held, China has assured Pakistan’s refinance of debts between March and June 2025. This means changing the old loan with a new loan.
This month, Pakistan’s foreign exchange reserves have increased after receiving a loan of $ 1 billion from the International Monetary Fund (IMF). By the end of June, Pakistan needed China’s financial assistance to maintain its foreign exchange reserves in double digits. If China did not help, Pakistan’s Forex Reserve would have gone below $ 10 billion.
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