China, Saudi assure $13b funding to Pakistan

Pakistan on Friday said to have secured about $13 billion in additional financial support from two traditional friends — about $9bn from China and over $4bn from Saudi Arabia — on top of assurances for about $20bn investments, according to Dawn.

Finance Minister Ishaq Dar told journalists that during Prime Minister Shehbaz Sharif’s recent visit to Beijing, the Chinese leadership promised to roll over $4bn in sovereign loans, refinance $3.3bn commercial bank loans and increase currency swap by about $1.45bn — from 30bn yuan to 40bn yuan. The total worked out at $8.75bn, said the Pakistani daily.

“They promised the security of financial support,” Mr Dar said and quoted Chinese President Xi Jinping as telling Mr Sharif to “don’t worry, we will not let you down”.

Mr Dar said the Pakistani delegation had four major engagements, including meeting with the Chinese president and the prime minister, and the chairman of the National People’s Congress, the country’s legislature.

These would be rolled over whenever they reach maturity, the minister said, adding that about $200 million worth of commercial loans had already flowed in a few days back.

Responding to a question, Mr Dar said the Chinese side had also agreed to fast-track the processing for a $9.8bn high-speed rail project (Main Line-1) from Karachi to Peshawar and both sides would immediately trigger their respective teams.

Another official said the two sides were hoping to arrange bidding for the project by December and negotiations for financing terms and conditions could follow once a bidder is selected.