Pakistan seeks $ 2.7 billion loan from China for CPEC Mainline-1 project – Pakistan seeks $ 2.7 billion loan from China for belt and road project: report

Pakistan to seek $ 2.7 billion loan from China (file photo)

Islamabad:

Pakistan, facing a financial crisis, is preparing to take out a loan from China. Pakistan has decided to seek a loan of $ 2.7 billion from China for the construction of the Mainline-1 Project Package 1 of the China-Pakistan Economic Corridor (CPEC). This loan is being sought from Pakistan from China at a time when Pakistan’s economy is already on the verge of bankruptcy. The coronavirus epidemic has made the financial crisis more serious.

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Pakistani newspaper “The Express Tribune”, citing government officials, said in its newspaper that the sixth meeting of the Mainline-1 project funding committee was decided that Pakistan will initially receive $ 6.1 billion in Chinese funding. from China. Will seek approval for the loan of only $ 2.73 billion. The ML-1 project involves the modernization and doubling of the 1,872 km railway line from Peshawar to Karachi.

According to the newspaper’s news, Pakistan’s Ministry of Economic Affairs has decided to send an official letter of intent to China next week, as it is estimated that China will plan next year’s financing plan by end of the month. Can finalize.

Sources told the Pakistani newspaper: “In April of this year, Pakistan signed a condition sheet for loans from China, under which a loan was required at an interest rate of 1%. However, now on behalf of China There has been no formal response to date. ”“ Informally, Chinese officials have said that the interest rate should be higher than the rate mentioned in the term sheet, ”he said.

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