Faizan Hassan
Member
- Joined
- Apr 11, 2020
- Messages
- 104
Pakistan is in talks with two Chinese banks, Industrial and Commercial Bank of China (ICBC) and the Bank of China, to secure a total loan of $600 million, aiming to bridge a substantial financing gap. The negotiation is in advanced stages, and the loans are expected to be received by the next month.
The government is also optimistic about improving its credit rating through successful International Monetary Fund (IMF) talks, which would enable borrowing from non-Chinese foreign banks. The funds are crucial for stabilizing Pakistan's external sector, and China has been a key source for emergency financing in recent years. While the interest rates on the new facilities may be higher due to the global interest rate environment, Pakistan looks to address its budgeted foreign commercial loans of $4.5 billion.
The government is also optimistic about improving its credit rating through successful International Monetary Fund (IMF) talks, which would enable borrowing from non-Chinese foreign banks. The funds are crucial for stabilizing Pakistan's external sector, and China has been a key source for emergency financing in recent years. While the interest rates on the new facilities may be higher due to the global interest rate environment, Pakistan looks to address its budgeted foreign commercial loans of $4.5 billion.