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Saturday, December 10, 2022
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EditorialRenewed economic hopes

Renewed economic hopes

The prime minister has just returned from China and before that, he visited Saudi Arabia; information is now pouring in. The good news is that good news is coming out from these two trips, which is driving economic bluster. These friendly countries, which have always stood by Pakistan in times of trouble, have informed Prime Minister Shehbaz Sharif that they will meet Islamabad’s financial demands by June 2023. Both China and Saudi Arabia have provided Pakistan with a $13 billion funding package. As per the International Monetary Fund agreement, assurances regarding financial management have been provided, including the rollover of government debt reserves, further rollover, commercial loans, and increased oil facility on deferred payment. China and Saudi Arabia have also pledged to contribute an additional $8.8 billion and $4.2 billion, respectively, to the projected financial package for the current fiscal year (2022-23). Both financial packages will be beneficial to Pakistan’s beleaguered economy.

The nicest thing that has transpired in recent months under the coalition government is the resurgence of commercial connections between Pakistan and friendly countries. Previously, Pakistan was isolated due to the previous government’s cold shoulder toward China on the China-Pakistan Economic Corridor. Following Prime Minister Shehbaz Sharif’s recent visits to China and Saudi Arabia, this coldness has given way to cordial relations. It should be mentioned that the State Bank of Pakistan currently possesses $8.9 billion in foreign exchange reserves. In the next few days, China will roll over $4 billion in sovereign rollover deposits and $3.3 billion in commercial loans. The total Chinese package for the current fiscal year is estimated to be $8.8 billion. The two countries have also agreed to restart development on CPEC, which was halted under the previous administration. Meanwhile, Saudi Arabia will invest $10 to $12 billion in a petrochemical plant in Gwadar. This cooperation between China and Saudi Arabia in difficult times is undeniably valuable, and the entire Pakistani nation is appreciative.

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