Pak pays more than 26 billion rupees in interest to China to repay its debt
Carrying the cost of the failure of Pakistan’s ruling governments, the country has had to pay more than Rs 26 billion in interest to China to repay debt maturing in fiscal year 2020-21, reported local media.
China’s Belt and Road Initiative (BRI) has left dozens of low and middle income countries (LMICs) struggling with “hidden debts” totaling $ 385 billion, according to a new study.
The findings are part of a report published by AidData, an international development research lab based at the College of William and Mary in Virginia. According to the report, China has used debt rather than aid to establish a dominant position in the international development finance market.
The annual financial statement was released by the State Bank of Pakistan (SBP) on Friday which revealed that the bank had tapped into the $ 4.5 billion or 30 billion yuan trade finance under the deal. China-Pakistan exchange, the Express Tribune reported.
“During the year, the overall limit of 20 billion yuan was further extended to 30 billion yuan for a period of three years against the rupee with installments of three months to one year. These purchases were fully utilized as of June 30. , 2021, “the newspaper reported citing the financial statements.
The statement further states that the interest charged on the outstanding balance amounts to Rs 26.1 billion.
The central bank said there had been an increase of Rs 272 billion in a single year through June, with the value of the currency swap rising from Rs 476.6 billion to Rs 748.5 billion.
The newspaper further reported that Pakistan was repaying its foreign debts using the Chinese Trade Finance Facility.
Notably, Pakistan had received from Saudi Arabia a financial envelope of $ 6.2 billion for three years in 2018, which Saudi Arabia claimed “ahead” of its schedule, the newspaper reported citing information from the Ministry of Finance.
Interestingly, Pakistan repaid the loan to Saudi Arabia after taking a loan of the same amount from China.
(With entries from ANI)
Disclaimer: This article was posted automatically from an agency feed without any text changes and has not been reviewed by an editor
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