China has increased its economic sway in Pakistan during the past year, providing more than $1bn in loans to help its neighbour stave off a currency crisis.
State-backed Chinese banks have twice come to the rescue of the nuclear-armed state, officials have told the Financial Times, with $900m in 2016 and $300m in the first three months of this year.
The loans demonstrate the perilous fragility of Pakistan’s stocks of foreign currency, depleted in recent months by rising imports and falls in exports and remittances from Pakistanis abroad.
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