ISLAMABAD; Pakistan and China are working on a $ 12 billion deal for funding former’s energy and infrastructure projects, sources told NEWSMAN on Tuesday.
Sources said China will fund the deal money to Pakistan in cash to spend for its two key sectors…energy and infrastructure.
Bostan Khan, chairman All Pakistan Currency Dealers Association, while talking to NEWSMAN by phone from Karachi said Pak- China deal for $ 12 billion would be a good omen for Pakistan. He said the funds to be provided by China under the deal will help Pakistan stablise its currency and stop soaring trend in dollar value.
He said ” With coming in of funds from China, dollar will depreciate massively”. He seconded advisor to the prime minister on Finance , Shaukat Tarin, for possible downward trend in dollar value in coming days. Mr Khan said ” I agree 100 % with the advisor on Finance to the prime minister that dollar is going to shed by Rs 10 or even more in coming days”
Bostan Khan also appreciated Saudi Arabia for lending direly needed funds to Pakistan, besides extending oil facility to Pakistan on deferred payment.
Shaukat Tarin had claimed the other day that hoarders of dollar will face bad news very soon when the rupee will appreciate against dollar by minimum by Rs 10.
Divulging the details of the Pak- China deal for $ 12 billion in next couple of weeks, the sources said major component $ 7 billion of the deal, will go into Pakistan’s energy sector to reform and restructure its energy sector, in particular , refining industry and to finance pipeline projects.
The remaining $ 5 billion of the deal money will be injected into infrastructure related projects already in progress under China Pakistan Energy Corridor (CPEC).
Pakistan’ s energy sector direly needs investment of minimum $ 24 billion in next two to three years as its entire energy sector is in shambles due to paucity of funds. Its refineries are almost obsolete and hence are unable to produce fuel of the international standard. Similiarly, Pakistan is paying huge extra cost to the lorry owners,who off and on, turn into a blackmailing mafia , as it lacks proper pipeline network to pipe fuel from Karachi to many parts of the country. Pakistan was working on various options to get funds for upgradation of its energy sector and finally it opted to get these funds from China.