BackChina, Pakistan’s biggest financial support, will continue to fund Islamabad
The majority of Pakistan's $27 billion in bilateral debt, around $23 billion, is made up of Chinese loans.
PremiumChinese President Xi Jinping has said that his country will continue to support Pakistan in stabilising its financial situation. The comment comes after Shehbaz Sharif, the prime minister of Pakistan, travelled to Beijing to meet with Chinese officials to discuss the $65 billion China Pakistan Economic Corridor (CPEC) project.
Sharif claimed in September that even friendly countries saw Pakistan as a country perpetually pleading for financial assistance. He claimed that, whenever Pakistani ministers contact or travel to a friendly nation, the locals think we are there to plead for aid. Sharif said Pakistan had been wandering for the past 75 years with a "begging bowl".
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Imran Khan, the deposed former premier, vigorously disputes Sharif's government's claim that the CPEC project was slowed down during his administration.
The majority of Pakistan's $27 billion in bilateral debt, around $23 billion, is made up of Chinese loans. Since China and Pakistan have always been strong allies, Sharif is also likely to bring up security-related topics during his visit. The ministers of finance and energy are among those who are in Sharif's entourage.
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A major investment has been made in energy and economic projects in Pakistan as part of President Xi Jinping's Belt and Road Initiative (BRI), which intends to improve China's road, rail, and maritime ties with the rest of the globe.
An aide travelling with the prime minister told Reuters that during his two-day first trip to Beijing since taking office in April, Sharif will also ask China for debt relief, particularly the rolling over of bilateral debt.
One of the first world leaders to speak with President Xi following his election to a third term will be Sharif. Even before the disastrous floods that the nation of Pakistan experienced over the summer, which resulted in losses of at least $30 billion, the government was already experiencing a balance of payments issue.
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"My discussions with the Chinese leadership will focus on revitalization of CPEC among many other things," Sharif said in a statement adding that he will be meeting President Xi and other Chinese executives while there.
Although Pakistan has previously hinted that it will look for bilateral debt relief to ease its balance of payments issues, it has not yet made any public declaration regarding whether it will formally request Beijing for such assistance. Pakistan's central bank reserves are now at $7.4 billion, barely enough to cover imports for one and a half months.
(With agency inputs)
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