Pakistan Turns to China for Aid Amid Rising Fears of Indian Retaliation After Pahalgam Terror Attack

Tensions Soar After Deadly Terror Attack in India

The Pahalgam terror attack, which claimed the lives of Hindu tourists in Jammu and Kashmir, has significantly escalated tensions between India and Pakistan. India has vowed to bring the perpetrators to justice, raising fears of a military response from New Delhi.

Pakistan’s Financial Woes Compounded by Crisis

This heightened tension comes at a particularly challenging time for Pakistan, which is grappling with a severe economic crisis. The country is facing significant debt, soaring inflation, and a weakening currency. With its economy already struggling, Pakistan has been forced to seek financial assistance from its allies, particularly China.

China Comes to Pakistan’s Rescue

Pakistan’s Finance Minister, Muhammad Aurangzeb, recently requested an additional 10 billion yuan (approximately $1.4 billion) in financial aid from China. This request, made under an existing currency swap agreement, aims to bolster Pakistan’s dwindling foreign exchange reserves. Aurangzeb revealed this during a press conference following meetings with the International Monetary Fund (IMF) and the World Bank in Washington.

Hopes for Economic Stability and Self-Reliance

Aurangzeb expressed optimism that Pakistan’s current IMF agreement would be its last, highlighting the government’s commitment to economic reforms aimed at achieving long-term self-reliance. These reforms include downsizing the public sector, restructuring the pension system, and encouraging private sector participation.

Economic Cooperation Deepens

While Pakistan seeks to stabilize its economy through internal reforms, its reliance on China for financial assistance continues to grow. The two countries have strengthened their economic ties through initiatives like the China-Pakistan Economic Corridor (CPEC), a major infrastructure project.