Removing Economic Shackles Placed On Pakistan By The US, China Provides $1.3 Billion Loan to Rescue Debt-Ridden Pakistan

© AP Photo / Thomas Peter/PoolASIA & PACIFIC

New Delhi (Sputnik): Pakistan recently received $1billion from the World Bank and and $500 million from the Asian Development Bank to help the country in its fight against the coronavirus pandemic.

The State Bank of Pakistan has received $1.3 billion as loan disbursements from Chinese banks, its third major funding from China in just a fortnight.

​Earlier this month, the Asian Development Bank approved two loans worth $500 million to support “the Pakistan government’s emergency needs to prevent significant adverse social and economic impacts.”

Pakistan’s external debt reached $109.9 billion in March 2020. Pakistan’s public debt, which was at 87.5 percent of gross domestic product at the end of the last financial year, is now estimated to have risen to 90 percent of GDP.

The World Bank estimates that the current account deficit, the balance between imports and exports, will narrow to 1.9 percent in 2020, as imports fall.

While COVID-19 hit Pakistan’s growth at a critical juncture in its macroeconomic recovery, the country’s current account turned a surplus of $13 million in May against a deficit of $530 million in April and $1,004 million in May last year.

“On a cumulative basis, the Current Account Deficit has narrowed by 73.6 percent to $3.3 billion during Jul-May of this financial year from $12.5 billion during the same period last year,” the State Bank of Pakistan said.

Last week, Pakistan signed a $2.4 billion investment deal with China for the Kohala Hydel Power Project, a flagship infrastructure-related project conceived by Chinese President Xi Jinping as part of Beijing’s expanded Belt and Road Initiative. The project is being built on the Jhelum River on the Pakistani side of Kashmir. 

Click here for reuse options!
Copyright 2020 Hiram's 1555 Blog