China fills half of the gap, just modalities are to be discussed

ICMD, Nov 6, 2018

Finance Minister Asad Umar on Tuesday claimed that Pakistan's "balance of payment crisis is over" as China is committed to providing a short-term relief to Pakistan.

He told media a Pakistani delegation is traveling to Beijing on Friday to discuss modalities of such a relief.

"The long-term solution to the balance of payments crisis is to increase our exports, and to do that we should have enough income so that we do not need to borrow," Umar, who was a part of the Prime Minister Imran Khan-led delegation that visited China recently, explained during a press conference today. "In this regard, we have received a commitment from the highest level.

"Regarding the doubling of our exports, we are not talking long-term. We have [this target] for the ongoing year. We have also discussed short-term reliefs. A decision in principle has been taken, but to discuss its modalities our contingent is going to Beijing on November 9.

He said they had told the people about the $12bn financing gap, of which $6bn have come from Saudi Arabia, and the rest has come from China. Thus, the immediate balance of payment crisis of Pakistan has ended. I want to make that clear in unequivocal terms. We do not have any balance of payments crisis now. "