Pakistan has received commitments of$13 billion from Saudi Arabia and China, which has become a sigh of relief for Islamabad. This announcement was made by Finance Minister Ishq Dar, who ruled out the chances of Pakistan’s default.
This additional financial support from the two traditional friends is an indicator that Pakistan’s potential cannot be underestimated, irrespective of its fallacious economic approach in the current milieu, and at the same time illustrates the indispensability of its geopolitics.
The package of assistance has come in the backdrop of a landmark visit by Prime Minister Shehbaz Sharif to China, and the upcoming air-dash of Crown Prince Mohamad bin Salman, Prime Minister of Saudi Arabia.
It is appreciated that the leadership of both countries understand Pakistan’s tough phase of economic circumstances, and are forthcoming as usual to bail it out. It is no small gratitude that Chinese President Xi Jinping reportedly told the visiting Pakistani delegate, “don’t worry, we will not let you down.” So is the benevolence of the Royal leadership that agreed to increase its financing up to a maximum of $6 billion and doubled its deferred oil facility of $1.2 billion.
The Kingdom had also agreed to revive the $10-12 billion petrochemical refining project at Gwadar, which will strategically upbeat Pakistan’s future prospects.
The Chinese rollover of $4 billion in sovereign loans, refinance of $3.3 billion from commercial banks and a currency swap of $1.45 billion is a blessing in disguise in times of exigency. Furthermore, IMF has also assured to sand with Pakistan in this need of time.
Beijing’s thrust in buoying Pakistan’s infrastructure is never lost and is evident from the $9.8 billion ML-1 rail project, which will embolden CPEC’s success story. This entire exercise is meant to harness the desired $35 billion in order to sit pretty coolly while handling debt and liabilities during the current fiscal year.
Statistics in sight give a picture of smooth sailing for Pakistan, but time will tell about the fulfillment of these commitments.
