Federal Minister of Finance, Ishaq Dar, has disclosed that Pakistan’s two closest allies, China and Saudi Arabia, will provide a multibillion-dollar financial package to help Pakistan with its fragile economy.
According to the Finance Minister, both countries will offer Pakistan a package worth $13 billion.
He further said that China is planning to offer assistance totaling $8.8 billion, including the rollover of debt during the current fiscal year, and added that it will also roll over deposit returns worth $4 billion.
In addition, it will grant $3.3 billion in commercial loans along with an additional financing of $1.45 billion, Ishaq Dar claimed.
Meanwhile, Saudi Arabia is anticipated to contribute an additional $4.2 billion in assistance, including $3 billion in additional reserves and an oil facility on deferred payment, the Finance Minister added. He announced that the Kingdom would develop a petrochemical complex in Gwadar.
Furthermore, the Minister noted that both countries have assured the Prime Minister (PM), Shehbaz Sharif, of their assistance and will support Pakistan’s financial requirements until June 2023.
Besides, China has pledged that work on CPEC’s flagship railway project, Main Line 1 (ML-1) and Karachi Circular Railway (KCR), will commence soon.