Charts of the Day: China Denies It’s to Blame for Pakistan’s Soaring Debt
China has denied its lending to Pakistan for infrastructure projects caught the country in a debt trap, after Islamabad reached out to the International Monetary Fund (IMF) for a billion-dollar bailout package.
The cash-strapped country has made a formal request to the IMF for an aid package between $6 billion to $12 billion this month. If passed through, this will be Pakistan’s 13th IMF loan package since 1988.
Pakistan’s foreign debt reached $95.1 billion in the second quarter, up 40% since the IMF’s $6.6 billion loan to the country in September 2013, according to the State Bank of Pakistan.
Pakistan has been a key part of China’s Belt and Road Initiative. Under the China-Pakistan Economic Corridor (CPEC) program, the Pakistani government was granted Chinese loans to build billions of dollars of infrastructure projects, from railways to roads, according to CPEC data.
China does not publish data on the size or conditions of its loans to Pakistan, which has led to criticism over the opaque nature of the deals.
China’s Foreign Ministry said in a statement (link in Chinese) Monday that “the debt caused by corridor construction accounts for a very low proportion of Pakistan’s debt, and certainly is not the cause of the current financial difficulties in Pakistan.”
It also said China wants the IMF to make a fair assessment of Pakistan’s debt situation.
Contact reporter Charlotte Yang (firstname.lastname@example.org)
Nov 12 17:25
Nov 12 16:38
Nov 12 13:15
Nov 12 12:44
Nov 12 12:18
Nov 12 12:11
Nov 12 10:55
Nov 12 06:09
- 1China’s Manufacturing Sector Expands at Fastest Pace in Nearly Three Years, Caixin PMI Shows
- 2China Will Create ‘Space Economic Zone’ by Midcentury: Report
- 3Swiss Telecom CEO Explains Why He’s Sticking With Huawei
- 4China Revamps Undergraduate Studies, Tapping Controversial Talent Program
- 5Alibaba’s Sales Surge 40% and Profit Triples
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas