Debt-ridden Pakistan is reportedly seeking additional loan of $2.7bn from China

Islamabad: – Pakistan will be taking a fresh loan of $2.6 billion from China, for the China Pakistan Economic Corridor (CPEC). It is being said that Pakistan has asked for this loan for expanding the Peshawar-Karachi railway. But it is being claimed that these funds will be used for paying the loans taken from Saudi Arabia and Qatar.

Pakistan economy has hit rock bottom. Inflation is scaling new heights and the population of Pakistan is infuriated with the Imran Khan government. The Coronavirus pandemic has created further stress in the Pakistan economy. In such a situation, Saudi and Qatar have demanded repayment of the loans advanced to Pakistan. Saudi is enraged because of the Pakistani efforts of creating closeness with Turkey and Iran. The Saudi-Pakistan relations have been severely strained because of this and Saudi warned Pakistan to return the loans.

Only two days ago, reports had been published that Pakistan will be repaying $2 billion, out of the total outstanding, to Saudi. It is being claimed that there has been an addition to the foreign exchange reserves and Pakistan will be repaying the loans from that amount. But it is also being said that in reality, Pakistan is borrowing funds from China to repay Saudi.

Pakistan is creating a picture that it needs funds for expansion of the Peshawar-Karachi railway line and has asked for an additional loan of $2.6 billion from China. The Pakistani borrowing, from China, had reached $30 billion by April 2020. Most of these funds have been borrowed under the pretext of CPEC.

Pakistan is completely trapped in Chinese debt. Looking at the Pakistan economy, it is being said that it will take Pakistan, 40 years to repay this amount. China will exploit Pakistan in every possible way, against these loans. But the Pakistan government, who has taken the self-destructive decision of creating enmity with Saudi and the other Middle Eastern countries, is not left with any other option. The Pakistani journalists are claiming that the Imran Khan government, in Pakistan, is borrowing these funds out of desperation.