Tuesday, 10 December, 2019, 7:30 PM
Home Business

Pakistan owes China more money than it owes the IMF

Published : Monday, 7 October, 2019 at 12:00 AM  Count : 24

NEW DELHI, Oct 5: Pakistan needs to repay China more than double the amount it owes the International Monetary Fund (IMF) in the next three years, as loans racked-up to boost foreign exchange reserves and bridge a financing gap become due.
The South Asian nation owes $6.7 billion in commercial loans to China over the three years through June 2022, according to the IMF, which this year approved a new program to bail out Pakistan from a crisis. Islamabad needs to pay the multilateral lender $2.8 billion in the same period.
Pakistan, one of the biggest beneficiaries of China's Belt and Road Initiative, has been borrowing from Beijing to tide over a financial crisis. Still, the money was enough to only partly bridge a financing gap, pushing the South Asian nation to knock at the IMF's doors.
IMF's $6 billion loan programme will be last for Pakistan: SBP governor




 "The borrowing picked up after the Belt and Road started," said Hafiz Faizan Ahmed, head of research at Karachi-based Optimus Capital Management Pvt. "A bulk of the Chinese lending happened about two years ago when dollar reserves were dwindling, so the government kept borrowing and borrowing."
    -Bloomberg



« PreviousNext »



Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000. Phone :9586651-58. Online: 9513959, Advertisement: 9513663
E-mail: info@dailyobserverbd.com, online@dailyobserverbd.com, news@dailyobserverbd.com, advertisement@dailyobserverbd.com,   [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft