Amid Rising Tensions with India, Pakistan Turns to China for a 10 Billion Yuan Loan

New Delhi (The Uttam Hindu): Amid the tension in relations between India and Pakistan after the terrorist attack in Pahalgam, Jammu and Kashmir, Pakistan is once again looking towards its close friend China for economic help. According to a Reuters report, Pakistan, which is facing economic crisis, has sought an additional loan of 10 billion yuan (about 1.4 billion dollars) from China.

Reuters reports Pakistan Finance Minister Muhammad Aurangzeb as saying that Pakistan has requested China to increase its existing 'swap line' (currency swap agreement between the central banks of two countries) to 10 billion yuan. Finance Minister Aurangzeb gave this information in an interview to Reuters during the International Monetary Fund (IMF) and World Bank meetings in Washington, US.

He said Pakistan already has a 30 billion yuan swap line with China. Pakistan also hopes to launch 'Panda Bonds' (bonds issued by non-Chinese entities in China's domestic market) before the end of this year. This is not the first time Pakistan has sought additional financial assistance from China. Earlier in October 2024, Pakistan had also requested an additional loan of 10 billion yuan from China. Pakistan, which is facing a severe cash crunch, has already used the existing trade facility of 30 billion yuan (about $ 4.3 billion) from China.

In the atmosphere of tough measures taken by India after the Pahalgam attack and increased tension between the two countries, this demand for loan by Pakistan reflects its weak economic condition and increasing dependence on friendly countries.