China again bails out Pakistan to pay Saudi debt

[AntiGossip]

China has again bailed out Pakistan as it agrees to immediately provide $1.5 billion financing line to repay the $2 billion Saudi Arabia debt, sources told The Express Tribune.

Out of $2 billion, Pakistan is now set to return the $1 billion on coming Monday, said the sources in the finance ministry and the State Bank of Pakistan (SBP). The remaining $1 billion is due in January, they added.

However, this time around, China has not given the loan from its State Administration of Foreign Exchange, commonly known as SAFE deposits, nor has it extended a commercial loan, said the sources.

Instead, both the countries have agreed to augment the size of a 2011 bilateral Currency-Swap Agreement (CSA) by an additional 10 billion Chinse Yuan or around $1.5 billion, the sources said. This has increased the size of the overall trade facility to 20 billion Chinese Yuan or $4.5 billion.

The CSA is a Chinese trade finance facility that Pakistan has been using since 2011 to repay foreign debt and keep its gross foreign currency reserves at comfortable levels instead for trade related purposes.

The benefit of this arrangement will be that the additional $1.5 billion Chinese loan will not reflect on the book of the federal government and it will not be treated as part of Pakistan’s external public debt.

Spokespersons for both the SBP and the finance ministry neither denied nor confirmed the development. The spokesperson for the central bank ducked the questions while the ministry of finance said that it was a “bilateral confidential matter”.

The Express Tribune had sent questions to the SBP about the CSA and a delay in uploading data on currency circulation, M2, on its website. “The M2 data will be updated soon on the website” was the terse response of the central bank, while maintaining silence on the question of currency deal.

Source https://tribune.com.pk/story/2275770/china-again-bails-out-pakistan-to-pay-saudi-debt

 

[Ratan]

Time & again China has proved that it is a friend in need & a friend indeed.
Long live China Pakistan friendship.

 

[Politically1981]

High time to stand on our own feet and stop begging. When are we going to learn? A nation of 220 million people cannot pay back 2B dollars

 

[tahirmajid]

Better to pay 2 billion at once, no need to wait for January, Saudi leader i.e. MBS proved to be a nonsense leader at all. However Pakistan should understand that there is no free lunch in the world

 

[Shahid Abassi]

It will not be added to our foreign debt but it will be deducted from the export figures.

 

[Syaed]

China has again bailed out Pakistan as it agrees to immediately provide $1.5 billion financing line to repay the $2 billion Saudi Arabia debt, sources told The Express Tribune.

Out of $2 billion, Pakistan is now set to return the $1 billion on coming Monday, said the sources in the finance ministry and the State Bank of Pakistan (SBP). The remaining $1 billion is due in January, they added.

However, this time around, China has not given the loan from its State Administration of Foreign Exchange, commonly known as SAFE deposits, nor has it extended a commercial loan, said the sources.

Instead, both the countries have agreed to augment the size of a 2011 bilateral Currency-Swap Agreement (CSA) by an additional 10 billion Chinse Yuan or around $1.5 billion, the sources said. This has increased the size of the overall trade facility to 20 billion Chinese Yuan or $4.5 billion.

The CSA is a Chinese trade finance facility that Pakistan has been using since 2011 to repay foreign debt and keep its gross foreign currency reserves at comfortable levels instead for trade related purposes.

The benefit of this arrangement will be that the additional $1.5 billion Chinese loan will not reflect on the book of the federal government and it will not be treated as part of Pakistan’s external public debt.

Spokespersons for both the SBP and the finance ministry neither denied nor confirmed the development. The spokesperson for the central bank ducked the questions while the ministry of finance said that it was a “bilateral confidential matter”.

The Express Tribune had sent questions to the SBP about the CSA and a delay in uploading data on currency circulation, M2, on its website. “The M2 data will be updated soon on the website” was the terse response of the central bank, while maintaining silence on the question of currency deal.

Source https://tribune.com.pk/story/2275770/china-again-bails-out-pakistan-to-pay-saudi-debt

Time to kick the ass of these filthy rich so called “brothers” who have always treated Pakistan like a begging bowl.Time to have a Pakistan oriented foreign policy instead of Saudi or Iran or Turkey oriented foreign policy.

 

[ammadk]

O wekh k oye.. Yeh cheeny bray H*rami hty. Unko paisy k ilawa kuch samjh nai ata.. No bullsh*t friendship. Money is of far more value.

 

[AntiGossip]

It is high time to distance ourselves from GCC nations as the MBS is siding with Isreali foreign policy issues. Also MBS days are numbered within his own House Al Saud with conflicting Princes of Al Saud for distancing itself from Pakistan.

 

[Imranpak]

China is compelled to help us for the sake of CPEC. This is different to friendship which is supposedly unconditional.