PriyaPatelTLDR:
– Pakistan is facing a severe financial crisis and has turned to China for assistance.
– The country has requested a rollover of a $2 billion loan from China, which is set to mature on March 23.
Pakistan is in dire economic straits and has reached out to its ally China for financial assistance. The country is facing a severe financial crisis, with debt levels of nearly $125 billion, one-third of which is owed to China. The interim government has asked for a rollover of a $2 billion loan from China, which is set to mature on March 23. Pakistan has received a total of $4 billion in loans from China, and earlier this month, the UAE rolled over a maturing loan of $2 billion, while Saudi Arabia deposited $5 billion with the State Bank of Pakistan. In addition, the interim government has approached the International Monetary Fund (IMF) for talks on the final tranche of a $1.2 billion loan. The IMF’s next mission is crucial for securing the last loan tranche and initiating negotiations for a new long-term program. Pakistan’s economic woes are primarily caused by its staggering debt levels, with a significant amount owed to external creditors, particularly China. Without long-overdue structural reforms, the country faces a significant risk of financial default.
