ISLAMABAD: The federal government has decided to seek $5 billion in loans from China, Russia and Kazakhstan as the country make desperate efforts to stabilise forex reserves, it was reported on Monday.
Pakistan plans to borrow $3 billion from China and $2 billion from Russia and Kazakhstan, according to Geo News.
Sources privy to the matter shared that the finance ministry has finalised the plan for the loan and an agreement in this regard will likely be signed with China during Prime Minister Imran Khan’s visit to Beijing next month.
Islamabad is planning to spend $2 billion on the ML-1 Railways project while $3 billion from China will be used to strengthen dwindling forex reserves.
Initially, the finance ministry sources added, the loan agreement with China will be signed for one year period.
The development came amid Islamabad’s hectic efforts to revive the stalled $6 billion loan programme of the International Monetary Fund as all the prior conditions have been met in this regard before the Executive Board’s meeting scheduled on February 02.