Beijing, November 4th: Pakistan continues to focus on new impetus for the CPEC project, while China will pay close attention to Pakistan’s demands for debt restructuring, Inside Over reported.
Pakistani Prime Minister Shebaz Sharif visited China for two days and met with Chinese President Xi Jinping on expanding cooperation on the China-Pakistan Economic Corridor (CPEC). China debt trap: Pakistan owes 30% of its external debt to China, IMF says.
The two leaders discussed extensive economic cooperation and exchanged views on regional and global development. But Pakistan’s all-weather friendship has concerns about debt rescheduling with Pakistan. China had already rescheduled her US$1 billion worth of debt earlier this year. Pakistan has neither requested nor held negotiations with China on a debt swap, Foreign Minister Bilawal Bhutto said.
It is pertinent to note that China is Pakistan’s largest single country creditor. Pakistan’s debt service to China over 2022-2023 accounts for almost 11% of Pakistan’s outstanding external public debt and 45 PC of total annual debt service. China’s total public and private debt totals US$26 billion, Inside Over reported.
Pakistan wants to reschedule its bilateral debt with China. Debt totaled $20.3 billion, including China’s $9.7 billion debt. The International Monetary Fund reported that Pakistan owes 30% of its external debt to China.
China’s lending to Pakistan is three times that of the IMF and far more than the combined support from the World Bank and the Asian Development Bank.
However, experts around the world have expressed concern that Pakistan may be hit by an economic crisis like Sri Lanka’s.
Pakistan’s floods have only exacerbated the economic crisis. Pakistan has requested a rollover of US$6.3 billion of debt. In her next eight months, the debt will mature. Sharif and his team may face major disappointments with debt rescheduling issues. China will certainly force negotiations on the debt issue.
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https://www.latestly.com/agency-news/world-news-china-to-push-hard-on-its-bargain-on-debt-matters-with-pakistan-4418936.html China pushes for negotiations over debt dispute with Pakistan