The friendship between China and Pakistan is growing rapidly, first they helped by giving weapons, now the dragon will give 316604005000 rupees:

News Topical, Digital Desk : China Financial Aid to Pakistan: The whole world is aware of Pakistan's economic condition. To support its economy, China has assured to give Pakistan a loan of Rs 316604005000 (3.7 billion dollars) next month. With this help from China, Pakistan's foreign exchange reserves are expected to increase, which is currently $ 11.516 billion.

Loans will be given in Yuan, not Dollars

However, according to media reports, this time China has decided to give this amount to Pakistan not in dollars, but in Chinese Yuan, unlike last time. This is because these days China is not trying to reduce the importance of the dollar in its foreign exchange reserves, but is emphasizing on the use of other currencies. China wants to reduce its dependence on the dollar and the euro.

China is repeatedly helping Pakistan

According to media reports, earlier China had given a loan of $ 1.3 billion to Pakistan at an interest rate of about 7.5 percent, which has been returned. This loan was paid by Pakistan between March and April 2024. Apart from this, a syndicated loan of $ 2.1 billion from three Chinese banks, equivalent to 15 billion yuan, is also going to mature in June. These include a loan of 9 billion yuan from China Development Bank, 3 billion yuan from Bank of China and 3 billion yuan from ICBC.

Why is Chinese help necessary for Pakistan?

In a recent meeting, China has assured Pakistan of refinancing loans maturing between March and June 2025. This means replacing the old loan with a new loan.

Pakistan's foreign exchange reserves have increased after it received a loan of $1 billion from the International Monetary Fund (IMF) this month. Pakistan needed China's financial help to maintain its foreign exchange reserves in double digits by the end of June. If China had not helped, Pakistan's forex reserves would have fallen below $10 billion.