China agrees to help Pakistan repay Saudi Arabia
China will pay $1 to $1.5 billion to rescue Pakistan
Karachi: Earlier this week the Pak-China relations took another turn as China agreed to give Pakistan $1 to $1.5 billion so that it can remove its burden of debt. With this much finance, the government will be able to pay off the outstanding payment to the Kingdom of Saudi Arabia
The sources have confirmed that Islamabad is ready to come clean by repaying the $2 billion Saudi debt. The $1 billion will be paid on Monday while the remaining $1 billion will be paid next month in January, said the Ministry of Finance.
This was not the first time that China has come forward to save Pakistan.
Nonetheless, China has not provided the loan from its State Administration of Foreign Exchange called SAFE deposits nor did it extend a commercial loan instead both countries have consented to increase the size of a 2011 bilateral Currency-Swap Agreement known as CSA by adding 10 billion Chinese Yuan or $1.5 billion.
Currency Swap Agreement
