ISLAMABAD the Ministry of Economic Affairs has created a strategy for obtaining 5 billion of loans in China, Russia, and Kazakhstan.
The government in power plans to take out a loan of three billion dollars in China as well as $2 billion in Russia in addition to Kazakhstan, BOL News reported on Monday.
According to people who are aware of the developments Finance ministry officials have completed the scheme for the loan and an agreement is expected to be signed with China during the Prime Minister Imran Khan’s trip to Beijing next month.
Islamabad plans to invest $2.5 billion for the ML-1 Railways project, with $3 billion of that coming from China to boost the decline in the country’s foreign exchange reserves.
The loan agreement with China is expected to be initially signed for one year according to sources in the ministry of finance.
The previous day in the day, the Senate approved earlier, the Senate passed State Bank of Pakistan Amendment Bill with 44 senators with 43 votes in support and 43 voting against.
The bill limits the control of the Finance Ministry on the State Bank and also clears one of the main hurdles in bringing back an estimated package of $6 billion International Monetary Fund package.
On the 26th of January The International Monetary Fund (IMF) upon request from the government put off its board meeting to the sixth time to review the Extended Fund Facility (EFF).
Federal Minister of Finance and Revenue Shaukat Tarin stated that the government has demanded the IMF to hold off its board meeting due to they believe that the State Bank of Pakistan (SBP) Amendment Bill 2021 must be approved through the Senate.
