A report from the media on Sunday claimed that Pakistan has approached China for another loan of 10 billion yuan, or around USD 1.4 billion as the financially strapped country has already utilized the existing 30 billion yuan trade facility.
Finance Minister Muhammad Aurangzeb made the plea to China’s Vice Finance Minister Liao Min over a video link on Thursday, while in Washington attending IMF and World Bank annual meetings. He requested the elevation of the limit of currency swap agreement from 30 to 40 billion yuan.
If cleared, the total facility would add up to around USD 5.7 billion according to The Express Tribune. Beijing has turned down most of Pakistan‘s previous applications for raising the debt limits. The country requested a hike in debt ceilings for the second time during the past fortnight after the Chinese government renewed the USD 4.3 billion (30 billion yuan) facility for another three years two weeks ago.
Pakistan and China had also agreed on a currency swap deal during the recent visit of Chinese Prime Minister Li Qiang, which will extend Pakistan’s debt repayment deadline to 2027.
The country has fully availed the current USD 4.3 billion, or 30 billion yuan, trade finance facility under the China-Pakistan currency swap arrangement to manage its debt repayments.
Chinese Premier Li Qiang, who was on a four-day visit to Pakistan, met with President Asif Ali Zardari and vowed to strengthen strategic cooperation across all sectors, which include the economy, investment, and regional connectivity.
State-run Radio Pakistan also reported them saying that CPEC projects needed to be speeded up.