2024-03-15 10:25:09
Islamabad: China has come forward to help Pakistan which is burdened with foreign debt and facing difficult economic situation. According to China’s Consul General in Lahore, China will help Pakistan overcome its external debt crisis by providing financial assistance. China’s Consul General Zhao Shiren, while addressing the business community in Faisalabad in Punjab province, said that Beijing has never pressured Islamabad to repay the loan even though it owes more than $2 billion as the payment date is approaching. It is done.
Bloomberg report says China’s $2 billion loan is equal to about a quarter of Pakistan’s Central Bank’s reserves, which stand at about $7.9 billion. Zhao said Chinese debt accounts for 13 percent of Pakistan’s total foreign debt. International Monetary Fund data shows that China’s government debt is much higher than 23 percent.
IMF program is also ending
Last year, Pakistan somehow avoided the threat of default by paying the installment of short-term loan from IMF, this program of IMF is ending next month. The IMF has classified the country’s debt as “borderline manageable” while a local think tank has labeled it unsustainable. Pakistan’s external debt and liabilities have nearly doubled since 2011 to $125 billion and interest payments are at a record high, according to think tank Tablab.
Pakistan BRICS Membership: India’s amazing diplomacy, Pakistan could not join BRICS even after China insisted
Regarding Pakistan’s economy, Islamabad based think tank Tabadalab has said that the debt profile of the country is very worrying. The country’s total debt and liabilities, including domestic and foreign debt, stand at 77.66 trillion rupees ($271.2 billion), the report said. Pakistan’s foreign debt is mainly derived from multiple creditors. These included Paris Club (6.3 percent), multilateral (30.1 percent), other bilateral (19.1 percent), commercial banks and T-bills (4.9 percent), Eurobonds (6.3 percent), International Monetary Fund (5.7 percent), banks (5.1 percent). ) and private sector liabilities (12.7 percent). The report said that Pakistan’s per capita debt was $823 in 2011, which will increase to $1,122 in 2023. It has increased by 36 percent in 12 years.