ISLAMABAD: Pakistan is expected to ask China for 10 billion dollars in financial assistance in the form of increased Balance of Payment (BoP) support, the use of China’s unused IMF SDRs, and the refinancing or rollover of commercial loans, Business Recorder reported on Thursday.
According to the report, Ministry of Planning, Development and Special Initiatives (PD&SI) has constituted a 21-member high level Working Group to coordinate and oversee preparation for Prime Minister’s upcoming visit to China during which nearly three dozen projects/MoUs would be discussed/signed.
The Working Group shall hold meetings and submit a comprehensive report for consideration of the Prime Minister by October 15, 2022.
Moreover, the Working Group shall finalize recommendations on the following 28 major infrastructure including CPEC projects/agreement to be considered/signed during the forthcoming visit of Prime Minister that include agreement on financing of ML-1 and commencement of tendering, payment to the CPEC IPPs and establishment of revolving account, Chinese investment to upgrade Pakistan’s power transmission and distribution system, financial closure of Azad Pattan, Kohala, Thar Block power projects, Karachi Circular Railway (KCR), realignment of KKH Thakot-Railkot, construction of Babusar Tunnel among others.
Earlier, US Secretary of State Antony Blinken urged Pakistan to seek debt relief from its ally China.
Blinken promised strong US support for Pakistan as it dries out from the floods, which have submerged one-third of the country, an area the size of the United Kingdom.
“I also urged our colleagues to engage China on some of the important issues of debt relief and restructuring so that Pakistan can more quickly recover from the floods,” Blinken said.
China is a key economic and political partner of Pakistan, pushing ahead with the $54 billion economic corridor that will build infrastructure and give Beijing an outlet to the Indian Ocean.
