Govt finalises plan to borrow $5bn from Russia, China, Kazakhstan

ISLAMABAD: The Ministry of Economic Affairs has prepared a plan for obtaining $5 billion in loans from China, Russia, and Kazakhstan.

The incumbent government plans to borrow $3 billion from China and $2 billion from Russia and Kazakhstan, BOL News reported on Monday.

According to sources privy to the development, the finance ministry has finalised the plan for the loan and an agreement will be inked with China during Prime Minister Imran Khan’s visit to Beijing next month.

Islamabad is to spend $2 billion on the ML-1 Railways project, with $3 billion coming from China to shore up the country’s declining foreign exchange reserves.

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The loan arrangement with China would initially be inked for a one-year period, according to finance ministry sources.

Earlier, the Senate passed the State Bank of Pakistan Amendment Bill with 44 members in favour and 43 against.

The bill weakens the Finance Ministry’s control over the State Bank and also clears one of the major hurdles to revive a $6 billion International Monetary Fund package.

On January 26, the International Monetary Fund (IMF) on the government’s request has delayed its board meeting for the sixth review of the Extended Fund Facility (EFF).

Also read: Pakistan Returns $1 Billion In Commercial Loans: SBP

Federal Minister for Finance and Revenue Shaukat Tarin said that the government requested the IMF to delay its board meeting as the State Bank of Pakistan (SBP) Amendment Bill 2021, needs to be passed by the Senate.