Pakistan expects to obtain fresh Chinese loans worth $1-2 billion to help it avert a balance of payments crisis, government sources said, in another sign of Islamabad’s growing reliance on Beijing for financial support.
Lending to Pakistan by China and its banks is on track to hit $5bn in the fiscal year ending in June, according to recent disclosures by officials and the finance ministry data reviewed by Reuters.
The interest-free loan portfolio has reached Rs. 14.5 billion in Pakistan to 2.6 million beneficiaries through Akhuwat Foundation, which is expanding its operation gradually throughout the country.
This was stated by Dr. Muhammad Amjad Saqib, founder of Akhuwat while talking to the media recently in the sideline of Ufone’s Ramadan campaign ‘Bano Achai ki Misaal’.
There are nearly 90 donors and 7,000 volunteers working with the foundation to improve the financial stability of the individuals through interest-free loans.
The ramp up in China’s lending comes as the United States is cutting aid to Pakistan following a fracture in relations between the on-off allies. In February, Washington led efforts that saw Pakistan placed on a global terror financing watchlist, drawing anger in Islamabad amid fears it will hurt the economy.
