Upto 30 percent of Pakistan’s foreign debt is owed to China, according to a report of the International Monetary Fund (IMF).
According to the report, the financial assistance of China alone is three times greater than the debts of the IMF. It also stated that Chinese debts are more than the combined funds of the World Bank (WB) and Asian Development Bank (ADB).
It has also stated that the Chinese debt to Pakistan which was 27 percent before being revised by $4.6 billion, from $25.1 billion in February, has reached 30 percent of its total foreign debts.
China by funding during the balance of payments crisis has been playing its role similar to a global money lender, according to a media report.
IMF’s loan tranche for Pakistan was provided during the ongoing week after the Fund’s executive board had approved to release of the $1.1 billion of its combined seventh and eighth reviews. The loan has averted the threat of imminent default.
Official financing for Pakistan includes $7 billion as rollovers of existing and $4 billion in additional financing commitments, including from China, Qatar, Saudi Arabia, UAE, and IFIs (World Bank, Asian Development Bank, and Islamic Development Bank), as per the IMF’s recent report.