Pakistan has again turned to China for help in avoiding a foreign currency crisis, deepening the two countries’ economic ties by borrowing $1bn from Chinese banks in April, Pakistan’s central bank governor has revealed.
In an interview with the Financial Times, Tariq Bajwa confirmed the loans were made by Beijing-backed banks, at what he said were “good, competitive rates”. The money strengthens the financial, political and military ties between the two countries and underlines the increasingly assertive role Beijing is playing in South Asia and beyond.
With Pakistan’s foreign exchange reserves dwindling due to falling exports and rising imports, officials in Islamabad hope the cash will help Pakistan avoid having to go to the International Monetary Fund for another bailout, having done so 12 times previously since 1988.