Pakistan plans to borrow another $1-2 billion from China

According to a Reuters, Pakistan expects to obtain fresh Chinese loans worth $1-2 billion to help avert balance of payments crisis, Pakistani government sources said, in visible sign of Pakistan’s growing dependence on China for financial support.

These fresh bout of borrowing would increase the total foreign lending from China to $5 billion in the fiscal year ending June, 2018. The reliance on China for support is growing in the wake of deteriorating relations with the United States. Earlier this year in February, US led effort put Pakistan on the global terror financing watch list.

The new Chinese loans are in a bid to contain the depleting foreign-exchange reserves.