Pakistan

China agrees to provide $2.3 billion loan amid economic crisis


Minister for Finance and Revenue Miftah Ismail on Wednesday announced the good news that the Chinese consortium of banks had signed the RMB 15 billion ($2.3 billion) loan facility agreement after it was signed by the Pakistani side a day earlier.

“The Chinese consortium of banks has today signed the RMB 15 billion (~$2.3 billion) loan facility agreement after it was signed by the Pakistani side yesterday. Inflow is expected within a couple of days. We thank the Chinese government for facilitating this transaction,” he wrote on his official Twitter handle.

The Chinese consortium of banks has today signed the RMB 15 billion (~$2.3 billion) loan facility agreement after it was signed by the Pakistani side yesterday. Inflow is expected within a couple of days. We thank the Chinese government for facilitating this transaction.
— Miftah Ismail (@MiftahIsmail) June 22, 2022

Another good news for the nation is expected by the end of current week as the Pakistan government is reportedly close to an agreement with the International Monetary Fund (IMF).

Talking to journalists on Tuesday, the finance minister had said that all budget related issues had been settled with the IMF.

The sources said that Pakistan and the IMF had reached an understanding on Tuesday night on the federal budget 2022-23 paving way for revival of the extended fund facility after the authorities committed to generate additional taxes in the upcoming fiscal year.

According to the sources, the understanding was reached during a meeting, held via video link, between the Pakistani economic team and the IMF staff mission, led by Finance Minister Miftah Ismail.

Also read: ‘Broad agreement’ reached with IMF to end uncertainty

The ‘broad agreement’ with the IMF on the next year’s budget that has seen its size increased to Rs9.9 trillion was announced last night as the government agreed to reintroduce tax on people earning up to Rs100,000 and petroleum levy from July 1.

The two sided have decided to gradually impose Rs50 per litre petroleum levy – the first tranche of Rs10 per litre from July and then Rs5 per litre from August onwards until it reaches the maximum threshold of Rs50 per litre by March 2023.


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