Islamabad: In addition to that, before China approved the Six Billion Dollars loan for the Main Line-a Railway Line Project in view of the weak economic condition of Pakistan. Grantee is sought. According to a report, China has proposed to provide both commercial and concessional loans to finance the rail project.
Help was also sought from China to repay Saudi Arabia’s debt
According to a report, the government of Pakistan is dependent on the help of China to repay the debt. However, it is believed that Pakistan always supports China because of its money. Pakistan had a debt of nearly $ 3 billion to Saudi Arabia, which it is repaying with emergency funding provided by China. There is a lot of tension between Saudi Arabia and Pakistan over this debt.
Islamabad has so far repaid a loan of two billion dollars out of the total debt.
Both countries have not signed the documents yet
According to the ‘Express Tribune’, the issue of additional guarantee came up in a meeting of the Joint Financial Committee for the Main Line-1 railway project 10 days ago (13 December). A senior Pakistan official involved in the meeting said that China raised the issue of additional guarantees during the talks but was not included in the draft document of the details shared with Pakistan. Both countries have not yet signed the papers.
Doubling of 1,872 km rail route included
The mainline-one project involves doubling the 1,872-km rail route from Peshawar (Peshawar) to Karachi (Karachi), repairing the tracks and the second of the China-Pakistan Economic Corridor (CPEC) This is quite important for the phase.
Pakistan seeks debt relief from G20 countries
Pakistan has applied for debt relief from G-20 countries. For this reason, China raised the issue of additional guarantees for clarity on the country’s economic condition. Sources in the Finance Ministry said that in the third phase of negotiations on financial issues, further situation was clarified regarding the loan of six billion dollars for the project. Under debt relief from G-20 countries, Pakistan cannot avail commercial loans at higher rates, except with prior approval as per the International Monetary Fund and World Bank format.
Pakistan wants to get six billion dollars at a one percent interest rate
In August this year, the Executive Committee of the National Economic Council (ECNEC) approved the strategically important Main Line-1 project to be built at a cost of $ 6.8 billion. The ECNEC meeting lasted for only 20 minutes and financial and technical issues were not resolved. According to the report, Pakistan wants to get $ 6 billion at a one percent interest rate while China has offered loans under both commercial and concessional categories.
