Pakistan eyeing $3 billion loan from Beijing during Imran Khan's visit to China

Islamabad: Pakistan is keeping its focus on availing a $3 billion loan and will seek investment in six sectors from Beijing during the upcoming China visit of the country’s Prime Minister Imran Khan, reported local media. Islamabad has set its sight on a loan to the tune of $3 billion from China to stabilise its dwindling foreign exchange reserves and also seeks an investment bonanza in half a dozen sectors during the visit of Prime Minister Imran Khan to Beijing next week, reported The Express Tribune. Imran Khan would also seek Chinese support in areas of finance, trade and investment reported the Pakistani publication citing government sources. Islamabad is considering requesting China to approve another loan to the tune of $3 billion in China’s State Administration of Foreign Exchange, known as SAFE deposits, said a senior finance ministry official. Imran Khan is set to depart for Beijing on 3 February. The Pakistani prime minister will attend the inaugural session of the Beijing Winter Olympics 2022. On Tuesday, a final meeting of the top Pakistani officials will take place to shape the agenda of Imran Khan’s visit. Beijing has already placed around $11 billion with Islamabad in the shape of commercial loans and foreign exchange reserves support initiatives, including $4 billion in SAFE deposits. The Chinese money is part of Pakistan’s current official foreign exchange reserves recorded at $ 16.1 billion, said The Express Tribune. Pakistan, in the last fiscal year, paid more than Pkr 26 billion in interest cost to Beijing. Notably, Pakistan paid the heavy amount only for using a $4.5 billion Chinese trade finance facility to repay the maturing debt. It comes as Saudi Arabia last month granted a loan of $3 billion to Pakistan. The loan has been consumed by the country and the foreign exchange reserves that before the Saudi injection stood at $15.9 billion have already fallen to $16 billion by 21 January, according to The Express Tribune.