Amid Economic Woes, Pakistan Seeks Additional $1.4 Billion Loan From China

In an effort to alleviate mounting economic pressure, cash-strapped Pakistan has approached China for an additional loan of 10 billion yuan (approximately $1.4 billion).

This request comes as Islamabad has already fully utilised a previously agreed 30 billion yuan ($4.3 billion) Chinese trade facility, according to a report by The Express Tribune.

Pakistan's Finance Minister Muhammad Aurangzeb recently met with China's Vice Minister of Finance Liao Min on the sidelines of the IMF and World Bank annual meetings in Washington.

During the meeting, Aurangzeb urged the Chinese side to increase the limits of the existing currency swap agreement to 40 billion yuan ($5.7 billion).

This is not the first time Pakistan has requested an increased debt limit, however, Beijing has declined all such past requests.

This development comes less than two weeks after China extended the current $4.3 billion (30 billion yuan) facility for another three years.

During Chinese Premier Li Qiang's recent visit to Pakistan, Islamabad and Beijing had signed a currency swap agreement, extending Pakistan's debt repayment period to 2027.

Pakistan has already fully consumed the existing $4.3 billion, or 30 billion yuan, trade finance facility under the China-Pakistan currency swap arrangement to repay its debts.

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