Finance Minister Credits China’s ‘Active Support’ in Securing $7 Billion IMF Loan

Pakistan’s $7 billion loan agreement with the International Monetary Fund (IMF) would not have been possible without the critical support of China, Finance Minister Muhammad Aurangzeb stated on Sunday. Speaking at an event hosted by the Islamabad Chamber of Commerce, Aurangzeb highlighted the “very generous and active support” provided by China throughout the process.

He shared that personal discussions with China’s finance minister and the governor of the People’s Bank of China (PBOC) were instrumental in securing the deal. “We remain extremely grateful,” Aurangzeb said during a televised interview with a private news channel.

Pakistan reached the 37-month loan agreement with the IMF in July, though the programme is still pending approval from the IMF’s executive board. It also requires confirmation of necessary financing assurances from Pakistan’s development partners, including China.

Aurangzeb noted that Pakistan’s cooperation with China predates major projects like the China-Pakistan Economic Corridor (CPEC), dating back to collaborative efforts like the construction of the Tarbela Dam. He expressed gratitude for China’s continued financial backing, which has included loans from commercial banks and other foreign lenders.

Prime Minister Shehbaz Sharif had previously acknowledged the significant help from “friendly countries” in meeting the conditions necessary for the IMF bailout.

Commenting on the upcoming visit of Chinese Premier Li to Pakistan, Aurangzeb said it was a “huge honour and privilege.” Reflecting on past visits to China, led by Prime Minister Sharif, he emphasized Pakistan’s readiness to reciprocate the warm reception they received in Beijing.

Addressing other key developments, including the Shanghai Cooperation Organisation (SCO) summit and the upcoming visit from a Saudi delegation, Aurangzeb remarked: “The foundation has been laid. We are now on solid ground, but there is no room for complacency.”