The loan from China will be used to stabilise foreign exchange reserves and loans from Russia and Kazakhstan will be spent on the Main Line One (ML1) Railway Project

Amid the economic crisis in the country, Pakistan is looking to secure a loan of approximately $3 billion from China. Apart from China, Pakistan is also seeking loans from Russia and Kazakhstan.

This development comes ahead of the country's Prime Minister Imran Khan's scheduled visit to Beijing this week.

PM Khan will visit the Chinese capital to attend the opening ceremony of the Beijing Winter Olympics 2022 on February 3. During his visit, he will also meet the top Chinese officials on the sidelines for bilateral talks.

It has been understood that Pakistan's government decided to seek a loan worth $5 billion. Loans to be sought from China, Russia and Kazakhstan. A loan of $3 billion is to be sought from China and $1 billion each from Kazakhstan and Russia.

The loan from China will be used to stabilise foreign exchange reserves and loans from Russia and Kazakhstan will be spent on the Main Line One (ML1) Railway Project.

Pakistan's Ministry of Economic Affairs has prepared a plan for borrowing as the loan agreement of $3 billion with China will be signed during PM Khan's visit to China. The initial agreement with China for the loan will be for one year.

The deals with Kazakhstan and Russia are also expected to be finalised and subsequently signed soon.

Meanwhile, PM Khan is set to depart for China for a three-day visit on Thursday and some federal ministers will also accompany him. The Pakistani PM will hold important meetings during his visit to China and will meet the Chinese President Xi Jinping.

PM Khan is also expected to hold bilateral meetings with other dignitaries at the Winter Olympics.

It is expected that during the Prime Minister's visit to China, CPEC and mutual security issues will be discussed and the regional situation will also be on the agenda.

The matter of China providing loans to Pakistan worth $3 billion will also be finalised and is expected to be signed during PM Khan's China visit.

The Pakistani Economic Affairs Ministry in a rebuttal to the media reports seeking a loan said that no such proposal is under process in the Economic Affairs Division for obtaining a $3 billion loan from China and $2 billion loan from Russia and Kazakhstan.