December 5, 2021
1 min read

Pakistan struggles to pay Chinese debts

Earlier in April, the International Monetary Fund had warned that Pakistan’s public debt sustainability was being undermined due to policy slippage and mounting contingent liabilities…reports Asian Lite News

Beijing’s debts are squeezing Pakistan’s pinched finances as external payments are set to balloon to USD 14 billion at the end of this financial year and nearly half is owed to Chinese commercial banks, largely for the Belt and Road Initiative (BRI) related projects, a media report said.

Experts say that Pakistan needs to ask Beijing’s financial authorities to reschedule its debts. It will ease pressure on the State Bank of Pakistan at a time when the bank’s foreign reserves fell to USD 17 billion in October, reported Asia Times.

Earlier in April, the International Monetary Fund had warned that Pakistan’s public debt sustainability was being undermined due to policy slippage and mounting contingent liabilities.

The World Bank’s Debt Report 2021 — which analysed the debts of South Asian countries — showed Pakistan lagging behind India and Bangladesh.

The report also emphasised that it was more comparable with debt-beleaguered Sri Lanka.

According to the WB report, Pakistan was the second nation after Sri Lanka among countries with a debt-to-GDP ratio exceeding 80 per cent. But if Pakistan’s net revenue, excluding the share of the provinces, is calculated then it ranks even higher than Sri Lanka.

On Friday, Pakistan’s Senate was told that internal debt increased from Rs 16 trillion (USD 91 billion) to 26 trillion (USD 148 million) over this period. Similarly, external debts swelled from Rs 8.5 trillion (USD 48.3 billion) to Rs14.5 trillion (USD 83 billion) in the same period. On these loans, the ministry said, the government paid Rs7.46 trillion (USD 42.4 billion) in interest, according to the Asia Times. (ANI)

ALSO READ: ‘A Day of Shame for Pakistan’

Previous Story

DMK, allies open new front against Centre over Dam Safety Bill

Next Story

Lithuania reportedly removed from China’s customs registry

Latest from -Top News

Ghana Welcomes PM Modi

Hundreds of people, including locals, started chanting “Modi-Modi”, “Bharat Mata Ki Jai” and “Vande Mataram” as soon as PM Modi arrived at the hotel….reports Asian Lite News Prime Minister Narendra Modi received

Musk Signals Thaw in Trump Rift

Musk credited Trump for resolving major global conflicts, tagging a Truth Social post to back his claim….reports Asian Lite News Tesla CEO and former presidential advisor Elon Musk appeared to signal a

Tibetans Slam China’s ‘Reincarnation Politics’

Sikyong said the Chinese government is systematically working to erase Tibetan identity by targeting its language and religion, core pillars of its cultural heritage….reports Asian Lite News With the Dalai Lama entrusting
Go toTop

Don't Miss

‘New evidence firmly revives Wuhan lab leak theory’

Experts have put forward two dominant theories on the origins

‘China’s biggest homebuilder on verge of collapse’

The company earlier on Wednesday said that it would raise