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Chinese Investments Key to Pakistan’s Economic Recovery

September 16, 2024
in Business, Health, Science, World
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As Pakistan grapples with an ongoing economic crisis, China remains its most significant ally, providing vital investments and loans to keep the country’s economy afloat. With nearly 23 percent of Pakistan’s external debt owed to China, Beijing’s financial support is crucial for Pakistan’s recovery.

In recent months, Pakistan has sought China’s assistance in rolling over loans to stabilize its foreign reserves. In response, Chinese officials have pledged increased investments in key sectors, including agriculture, energy, and technology, under the broader framework of CPEC. These investments are designed to revive Pakistan’s struggling economy by creating jobs and boosting exports.

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China has also promised to import more goods from Pakistan to help balance trade between the two countries. This increased trade cooperation aims to provide relief to Pakistan’s ailing industrial sector, which has suffered due to the ongoing financial crisis.

While Pakistan continues negotiations with the International Monetary Fund (IMF) for a much-needed loan, China’s support offers an essential lifeline. Beijing’s role in Pakistan’s economic revival underscores its strategic importance as both an economic and political partner.

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