In the past fiscal year, Pakistan paid nearly Rs 26 billion in interest to China for using a $4.5 billion Chinese trade finance facility to service maturing debt, a cost borne by the country as a result of successive governments’ failure to put the economy on a sustainable basis.
The State Bank of Pakistan (SBP) published its annual financial statement for the fiscal year 2020-21, which concluded on June 30, on Friday.
The central bank used up all of the $4.5 billion (or 30 billion yuan) trade finance facility available under the China-Pakistan currency swap agreement, according to the article.
