Miftah assures support for completion of CPEC projects

ISLAMABAD: Federal Minister for Finance and Revenue Miftah Ismail has assured complete support for the completion of the China-Pakistan Economic Corridor (CPEC) projects.

The federal minister met Pangchunxue, Charge d’Affaires of the Embassy of China, in Islamabad and discussed a wide range of bilateral issues. Minister for State Dr Ayesha Ghaus was also present.

The finance minister highlighted the brotherly relations and bilateral ties between Pakistan and China. He said CPEC will play a key role in further strengthening Pakistan’s economy and the relations between the two counties.

He assured complete support in the completion of CPEC projects. In this regard, the Chinese envoy also expressed the complete cooperation of the Chinese government.

The envoy said China is committed to developing CPEC projects under the vision of common prosperity. She said economic cooperation between the two countries will be further expanded by the completion of CPEC.

READ MORE: Chinese banks agree to provide $2.3bn loan: Miftah Ismail

The meeting comes a day after Finance Minister Miftah Ismail said that a Chinese consortium of banks has approved the $2.3 billion (15 billion renminbi) loan facility agreement for Pakistan.

In his tweet, the finance minister said the inflow was expected within a couple of days. He thanked the Chinese government for facilitating the transaction without providing any further details.

Foreign Minister Bilawal Bhutto Zardari also expressed his gratitude to the Chinese leadership. “The people of Pakistan are grateful for the continued support of our all-weather friends,” he said.

The development comes after that Pakistan and the IMF reached an understanding on all budget related, paving the way for the revival of the bailout programme by the end of the week.

The understanding was reached during a meeting, held via video link, between the Pakistani economic team led by Finance Minister Miftah Ismail and the IMF staff mission.

Earlier this month, the finance minister had announced that the terms and conditions for refinancing the deposit by Chinese banks had been agreed.

He had said the loan would help “shore up our foreign exchange reserves”. China had withdrawn the loan on March 25 and set tough conditions under which Pakistan could not utilize those funds.

The Chinese side agreed to roll over the amount but also done so at a cheaper interest rate of 1.5pc plus Shanghai Interbank Offered Rate (Shibor) instead of earlier 2.5pc plus Shibor.