PM Shehbaz Seeks $600m Loan from Chinese Banks, Negotiations Underway

News Desk2 hours ago

In order to obtain a $600 million loan, the prime minister is reportedly scheduled to hold meetings with the Commercial Bank of China and the Industrial and Commercial Bank of China.

According to sources, the Chinese banks’ strict demands were the reason why earlier talks with the banks failed.According to further sources, Pakistan is trying to ease the strict rules put in place by the Chinese banks, such as the deadline for payments to Chinese IPPs and an interest rate of up to 8%.

Read more: PM Shehbaz Sharif Plan: Negotiating a New Loan Deal with IMF Mission

Since July 2023, the government and the Chinese banks have been in negotiations to obtain the loan. The goal of the negotiations is to secure a $600 million loan arrangement with terms that are advantageous for Pakistan. The loan is now being sought for the upcoming fiscal year.

It is worth mentioning that Prime Minister Shehbaz Sharif is now in China and is scheduled to spend the day in Beijing.

At the Pakistan-China Friendship and Business Reception, the Prime Minister will speak. The leaders of China Exim Bank, China Power, China Energy, China Road and Bridge Corporation, China Construction and Communication Corporation, and China International Development Agency will meet with the prime minister.

Leave a Reply

Your email address will not be published.