Pakistan To Receive Loan Aid Under Agreement From China

Amid Pakistan's dwindling cash reserves, it seeks financial aid from China

Pakistan has been trying to cope up with its recent crisis of excessively decreasing cash reserves by seeking USD 2.3 Billion of financial aid from China.

A Chinese Consortium of Banks is expected to transfer the same in a "couple of days".

Economists and other analysts consider this move to lead Pakistan further fall into the Chinese dragon's debt trap.

In a latest update on this agreement, on Wednesday, Minister of Finance, Pakistan, Miftah Ismail stated that cash inflow under the loan agreement is expected within a couple of days.

As reported by Pakistan's local media outlet The Dawn. On his Twitter Handle post, Ismail wrote, "The Chinese consortium of banks, today signed up the RMB 15 billion (~$2.3 billion) loan facilitation agreement.

After, the Pakistani-side signed it up yesterday." Further adding that the inflow is expected within a couple of days. Thanking the Chinese government for facilitation of transactions ---Ismali added. Even the Foreign Minister of Pakistan, Bilawal Bhutto Zardari wrote on a social media post showing his gratitude towards the "continued support of all weather-friends."

So far as per the local media outlet, Pakistan is in a deep financial crisis. These new development reports emerged when Pakistan reached out to the IMF (International Monetary Fund) regarding the same.

This loan agreement between China and Pakistan also comes amid reports that the latter is blindly following Sri Lanka's path. This may lead the country to fall into the Chinese debt trap.

Picture Source: ANI