Islamabad, 23 June 2022 (TDI): Pakistan’s Foreign Minister expressed gratitude to President of China Xi Jinping and Foreign minister Wang Yi for signing the agreement on a 15 billion yuan loan to Pakistan on Wednesday.
Foreign Minister Bilawal expressed his appreciation to the Chinese for their support. He also said that the Pakistani people are once again grateful for the continuous support from their Chinese friends.
Upon the occasion, the Pakistani Finance Minister Miftah Ismail also thanked the Chinese friends and congratulated the people of Pakistan for getting financial support in the current economic crisis.
He added that after the visit of Foreign Minister Bilawal Bhutto Zardari, the Pakistani and Chinese officials were continuously in touch. Finally, the Chinese agreed to provide financial assistance.
Grateful to President Xi Jinping, Foreign Minister Wang Yi and the people of China 🇨🇳. Chinese consortium of banks has today signed the RMB 15 billion loan facility agreement, the people of Pakistan are grateful for the continued support of our all weather friends. pic.twitter.com/ZMjocIOBcV
— BilawalBhuttoZardari (@BBhuttoZardari) June 22, 2022
A sign of relief for Pakistan’s economy
Pakistan might be facing a possible economic crisis as the economic reserves are getting lower with every passing day. Moreover, the country is facing a high percentage of inflation.
During such a time, this loan of 15 billion yuan ($2.3 billion) will act as a supporting pillar for the Pakistani economy.
Also, the loan is provided with a cheaper interest rate of only 1.5%. This will make it easier for Pakistan to return the loaned amount.
After the signing of the agreement, the rupee also gained strength against the US dollar. The price of the US dollar fell by 4.7 rupees.
The developments are coming after the establishment of an understanding of Pakistan with International Monetary Finds (IMF). The Finance Minister said that this development will pave the way for Pakistan to receive loans from other countries and organizations.
Analysts are hoping that the signing of an agreement with China will ease the financial crisis in the country. This will also help to control inflation and release the pressure on the public.
Pakistan and China celebrated 71 years of diplomatic partnership and bilateral friendship this year.
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