Islamabad: Pakistan trapped with cash wants to secure a $ 3 billion loan (PKR 529 billion) from China and investment in half a dozen sector during the visit of Prime Minister Imran Khan to Beijing next week, according to a media report on Sunday.
Khan will visit the Chinese capital on February 3 to attend the opening of the Beijing Winter Olympics and also met with the top Chinese leadership on the sidelines of bilateral talks.
Express Tribune reported quoting government sources that the final meeting to form a visit agenda would take place on Tuesday.
A senior Ministry of Finance officials said that the government was considering asking China to approve other loans at a price of $ 3 billion in foreign state administration China, known as safe deposits, so as to increase its foreign exchange reserves.
China has placed around $ 11 billion (PKR 1,940 trillion) with Pakistan in the form of commercial loans and foreign exchange reserve support initiatives, including $ 4 billion (PKR 705 billion) in safe deposits.
Chinese money is part of the official state foreign exchange reserves currently recorded at $ 16.1 billion (2.8 trillion PKR).
In the last fiscal year, the country has paid the PKR 26 billion allegations of interest to China only to use China’s trade financing facilities of $ 4.5 billion (PKR 794 billion) to pay mature debt.
Last month, Pakistan also received loans from Saudi Arabia for $ 3 billion (PKR 529 billion), which the state had used.
The Pakistani government aims to secure Chinese investment in six priority sectors by highlighting competitive advantage that the country – cheap but skilled workforce, geographical access to Europe and Asia and tax exemptions.
“We will market textiles, footwear, pharmaceuticals, furniture, agriculture, cars and information technology sectors for Chinese investment,” said Chairman of the Azfar Ahsan investment council.
The government is expected to notify 75 Chinese companies that it provides access to trade routes to the Middle East, Africa and worldwide – offer greater incentives in the form of reduction in shipping costs.
“Unlike in the past when we will only talk about Pak-Sino’s friendship higher than Himalayas and sweeter than honey, this time we will prepare for China with a structured approach,” said Minister of Federal Planning and Asad Umar to The Express Pulpit.
He added that with the involvement of the Indonesian Authority of the Pakistani Economic Corridor (CPEC) the government has chosen these sectors for foreign investment where there is evidence of great benefits for Chinese investors.
Pakistani authorities said they believed his delivery was twice as cheaper than China.
It offers a greater opportunity for the relocation of the Chinese industry that is dying.
However, all of these fields and competitive advantages are known by investors but they remain reluctant to bring “big money” to Pakistan because of the inconsistent fiscal policy and energy.
China has decided to move to a more sophisticated textile and clothing industry and driven by high technology and engage in more value-added functions under the 2021-25 plan.