The volume of Chinese loans granted to Pakistan over two decades is about $21 billion more than previously thought, according to the EdData research institute affiliated with the University of William and Mary in the United States. According to the study, Islamabad’s total exposure to Beijing stands at $67.2 billion, much higher than the World Bank’s estimate of $46 billion. The latter, by the way, is based on the voluntary provision of data by the state.
According to information, Pakistan is the third largest borrower from Beijing after Russia and Venezuela.
In one of the most populous countries in the world, the weak economic situation does not alleviate indebtedness: due to high inflation, they were also forced to borrow $3 billion from the International Monetary Fund (IMF).
The China-Pakistan Economic Corridor (CPEC), initially valued at $50 billion, is being implemented in Pakistan.
The research institute’s figures also indicate that investment prices have fallen significantly. Elections will soon be held in the country, and one of the most important campaign topics will be the future of the China-Pakistan Economic Corridor. The largest share of Chinese loans went to the energy sector, with a total of $28.4 billion. Repaying loans is an increasing challenge for the government in Islamabad, and politicians are also divided over the existing relationship with Beijing.
Cover image source: Mehmet Semih Ugurlu/Anadolu Agency via Getty Images
