Dragon became the Messiah for poor Pakistan! Amidst the dollar crisis, China gave a lifesaver

A big relief news has come for Pakistan, which is suffering from severe economic crisis and severe shortage of foreign exchange reserves. China has once again come forward to save its all-weather friend (All-Weather Ally) Pakistan, which is yearning for dollars and is on the verge of default. China has issued a huge financial lifeline package to Pakistan to handle international payments and the sinking economy. Pakistani rulers have heaved a sigh of relief after getting this financial lifeline, because with this the immediate economic crisis looming over the country has been averted for some time. Help reached Islamabad from Beijing and stance of Saudi-UAE. According to information received from high-ranking sources in Islamabad, under this financial assistance, China has approved the rollover of its old loans and has also arranged for new foreign exchange funds. Pakistan was under extreme pressure for a long time due to the strict conditions of the International Monetary Fund (IMF) and the delay in installments from friendly countries like Saudi Arabia and UAE. In such a critical time, this big deposit given by China will help the Central Bank of Pakistan to bring its foreign exchange reserves back to a safe level. Pakistan gets further entangled in the debt trap. Even though this financial help from China is being seen as a big success and a lifesaver in Pakistan, but global economic experts are looking at it from a different perspective. Experts say that instead of making Pakistan economically self-reliant, this help will push it deeper into China’s ‘debt trap’. Pakistan already owes billions of dollars in debt to China, which also includes commercial loans related to CPEC projects. After this new financial coordination, Pakistan’s strategic and economic dependence on Beijing will completely increase. A round of speculation has started regarding whether this Chinese help will provide relief to the Pakistani people from inflation or just a show, what effect this Chinese help will have on the local markets and general public of Pakistan. According to economic experts, this dollar infusion will definitely put a break for some time on the record fall of Pakistani Rupee (PKR), which can help in keeping the prices of imported goods like petrol, diesel and food items stable. However, unless Pakistan makes drastic reforms in its internal tax structure and basic economic policies, it seems impossible for the general public to get permanent relief from the ravages of inflation.