China assures Pakistan of continued support

The Chinese envoy assured Finance Minister Ishaq Dar of continued support to neighbouring Pakistan, which remains engulfed in a balance payment crisis.

The development came during a meeting between Pang Chunxue, Charge’d Affairs, Embassy of the People’s Republic of China, with Dar at the Finance Division on Tuesday.

As per the statement from the Ministry of Finance, Dar highlighted historical bilateral relations between China and Pakistan and commended Chinese support for Pakistan. He also underscored the need for further deepening relations in economic, trade and financial sectors.

“The Chinese envoy praised close and shared friendly relations between the two countries. She assured the Finance Minister of continuous support of the Chinese government to the people of Pakistan,” read the statement.

Long-term ally China has been one of Pakistan’s major financiers, as the South Asian country’s foreign exchange reserves remained at critically low levels.

Pakistan received $1.3 billion from the Industrial and Commercial Bank of China Ltd (ICBC) this year – in three disbursements – and last month, China rolled over a $2-billion loan, providing relief during Pakistan’s acute balance of payments crisis.

Additionally, the country also received $700 million from China Development Bank towards the end of February.

Months of political and economic turmoil, worsened by crippling floods last year and record inflation, has put Pakistan among countries facing a debt crisis.

Meanwhile, talks with the International Monetary Fund (IMF) for a delayed $1.1 billion loan tranche, part of the bailout agreed in 2019, have dragged on for months.

Dar recently said Pakistan has met all of the IMF’s conditionalities for the revival of the loan agreement.