China extended a $2 billion loan that was due to maturity last week, according to Finance Minister Ishaq Dar, which is good news for the cash-strapped nation as it desperately needs money to avoid defaulting on its debt.
China turned over a $2 billion loan to the South Asian country on March 23, according to the country’s finance czar, disproving media rumours that the deal was still in the works.
Speaking to the upper house of Parliament, the PML-N stalwart disclosed that Islamabad and Beijing have two different types of economic relationships. One of these relationships is with Chinese commercial banks, while the other is tied to state administration of foreign exchange.
He added that according to an agreement with the Chinese government, states do not publicly disclose such information.
The most recent development is noteworthy since the fifth most populated country is currently dealing with a balance of payments problem, excruciating inflation, and diminishing foreign exchange reserves.
Although the talks dragged on, the administration kept up its negotiations with the IMF for the delivery of the bailout money.
