Delegations of Pakistan and China entered the final phase of talks for the $6 billion package as senior officials of foreign affairs, finance and other sectors from both countries met during a joint session on Friday.
According to reports, Islamabad is keen to take a bailout package from Beijing amid the economic crisis. Pakistani and Chinese delegations agreed upon various matters, including the financial aid, they added.
Earlier, China announced that there would be no change in the number of projects under the China-Pakistan Economic Corridor (CPEC), as Beijing agreed to provide economic aid to Islamabad to help overcome its financial woes.
The two countries agreed to “firmly move forward” on various infrastructure projects in Pakistan following a meeting between Prime Minister Imran Khan and his Chinese counterpart, Li Keqiang.
The agreement follows concerns that Islamabad’s spiralling financial crisis could lead Beijing to scale back its projects in the country, where it is helping to build the multi-billion dollar CPEC.
The project is at the heart of Chinese President Xi Jinping’s Belt and Road Initiative, an ambitious, globe-spanning trade and infrastructure programme.
Prime Minister Imran Khan and Chinese premier Li Keqiang witnessed the signing ceremony while the foreign ministers of both the countries and the concerned ministers and high-level officials of two countries signed the agreements and letters.
Last month, Pakistan received a $6 billion rescue package from Saudi Arabia, but officials say it is not enough and the country still plans to seek a bailout from the International Monetary Fund (IMF) to avert a balance of payments crisis.
It would be Pakistan’s 13th rescue package from the multilateral lender since the late 1980s.