In view of Pakistan's weak economic situation, China sought a guarantee in return for a 6 billion loan for the ML-1 project. China has offered commercial and concessional loans, ie mixed loans, in response to Pakistan's desire to get concessional loans.
According to the report, a joint meeting between Pakistan and China was held 10 days ago regarding ML-1 in which additional guarantee was demanded in return for the loan. According to a senior official who attended the meeting, China did raise the issue of additional guarantees but did not include them in the draft minutes of the meeting that it has handed over to Pakistan. So far, the meeting minutes have been signed by both countries. Did not
Finance Ministry sources say that in the third round of talks, China's position on the 6 billion loans has become clearer. The guarantee has been demanded by China because Pakistan has signed debt relief agreements with G20 countries. The G20 countries made this offer only to the poorest countries. The G20 countries have also stipulated with the debt relief that the countries that will benefit from this offer will not be able to get expensive commercial loans, that is why China has offered a mixed loan to Pakistan.
