Bankrupt Pakistan’s foreign debt has doubled

Islamabad (Pakistan) – Pakistan Prime Minister Shahbaz Sarif is on a 5-day visit to China. In this visit, he will meet Chinese President Xi Jinping. Pakistan is reassessing its relationship with China. Pakistan is hopeful about the China-Pakistan Economic Corridor (CPEC), but Pakistan’s debt has increased twice-fold in the last decade. Pakistan wants to get relief from this dwindling economy. Hence, all eyes are on this meeting.

Shahbaz Sharif will visit the Chinese cities of Xi’an and Shenzhen. These cities are symbols of the development of China. The leader Deng Xiaoping chose Shenzhen as the country’s first special economic zone.

Pakistan could not develop because of the economic corridor, and its debt is increasing incessantly.  In 2013, when Nawaz Sharif was in power, Pakistan’s foreign debt was Rs 4,91,000 crore. Today after over a decade, Pakistan’s debt is now over Rs 10,33,000 crore, of that, China alone has given a loan of 2,50,000 crore.

The debt burden of Pakistan’s dwindling foreign reserves has created problems for the import-dependent country. The Central Bank has only 75,000 crore rupees, enough for 2 months of imports.