Reports: Cash-crunched Pakistan to get an additional $13 billion from China and Saudi Arabia

As the government has been workingto stabilise the faltering national economy, Pakistan has reportedly obtained an additional USD 13 billion in financial backing from its longtime allies China and Saudi Arabia. According to finance minister Ishaq Dar, Pakistan would get around $9 billion from China and $4 billion from Saudi Arabia as part of the new financial support, in addition to guarantees for approximately $20 billion in investments.

He claimed that the Chinese leadership made a commitment to renew USD 4 billion in sovereign loans, refinance USD 3.3 billion in commercial bank loans, and increase the currency swap by approximately USD 1.45 billion, from 30 billion yuan to 40 billion yuan, during Prime Minister Shehbaz Sharif's recent trip to Beijing. The final figure came to USD 8.75 billion.

"They promised the security of financial support,” Dar, who recently took over as the new finance minister of Pakistan from his predecessor Miftah Ismail, said and quoted Chinese President Xi Jinping as telling Sharif, “Don’t worry, we will not let you down.”

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The minister said roughly USD 200 million in commercial loans had already come in a few days prior.

For financial assistance, Pakistan has been corresponding with China and Saudi Arabia. As part of agreements for around USD 35 billion putouts against debt and obligations during the current fiscal year, this included rolling over maturing loans.

(With inputs from agencies)

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