Where did Pakistan, who often conspired against India, know that its evergreen friend China would shock her in a difficult situation. The force on which Pakistan jumps has shocked his laughter and now he has started to put conditions for the loan. In fact, China has demanded additional guarantees before approving the $ 6 billion loan for the mainline, railway line project in view of Pakistan’s weak economic condition. Media reports said that China has proposed to provide both commercial and concessional loans to finance the rail project.
The issue of additional guarantee came up 10 days ago in the Joint Financial Committee meeting for the mainline railway project. A senior Pakistani official involved in the meeting said that China raised the issue of additional guarantees during the talks but it was not included in the document shared with Pakistan. Both countries have not yet signed the papers.
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The official said that Pakistan has applied for debt relief from the G20 countries. For this reason China has raised the issue of additional guarantees. 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 take commercial loans at higher rates, except with prior approval as per the draft International Monetary Fund and World Bank.
This year, in August the Executive Committee of the National Economic Council (ECNEC) approved a strategically important Main Line, a 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. Sources said that Pakistan wants to get one billion rupees on interest rate of six billion dollars while China has offered loans under both commercial and concessional categories.
