CHINA-PAKISTAN: PAK PRIME MINISTER IN CHINA (FEBRUARY 3-6) TO ATTEND BEIJING WINTER OLYMPICS AND SEEK LOANS
Pakistan Prime Minister Imran Khan arrived in China on February 3 to attend the Beijing Winter Olympics
and meet Chinese leaders including Chinese President Xi Jinping. Pakistan media reports indicate the
Pakistan Finance Ministry has finalized a draft agreement for a US$ 3 billion loan to shore up depleting
foreign exchange reserves to be discussed with Chinese leaders during Imran Khan’s visit to Beijing. Pakistan
separately plans to approach Russia and Kazakhstan for credit lines of US$ 1 billion each. Discussions will
also turn toward the US$1.5 billion in overdue payments Pakistan owes Chinese energy companies that have
built power plants as part of the $60 billion China-Pakistan Economic Corridor (CPEC).
(Comments: Pakistan has already borrowed US$ 15 billion from China in commercial loans and to support
foreign reserves, despite a US$ 7 billion infusion of Saudi and Chinese deposits. Pakistan paid US$ 148
million in interest to China for a US$ 4.5 billion trade finance facility to repay maturing debt during the fiscal
year ending in June 2022. Beijing recently stopped financing major CPEC projects while seeking new
security guarantees from Islamabad amid a rash of militant attacks on its interests. In particular, Beijing has
put the $6.8 billion Main Line-1 (ML-1) railway project, the CPEC’s largest, on the back burner.)
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