*ISLAMABAD – Statistics and Figures reveal that Pakistan’s growing relianceon Beijing.*
*Chinese banks continue to be our largest lender, accounting for a third of$1.5 billion we borrowed in the first four months of fiscal year endingJune 30.*
The contribution of Chinese money as a portion of our overall borrowing hasincreased this year, according to the Economic Affairs Division. In theprevious fiscal year, Pakistan had borrowed $10.7 billion worth of foreignloans and more than a fifth of this came from Chinese banks. Their share inthe July-October period this year has increased to 33%.
Pakistan is facing a double loss since its imports are more than twice itsexports, which result in a trading loss. This is not sustainable becauseits current dollar reserves ($10.2 billion) are not enough to pay for theessential imports that are necessary to support economic activity.
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More than 60% of the money Pakistan borrowed from foreign institutions andgovernments last year was meant to keep the country’s foreign exchangereserves high enough so it could avoid bankruptcy or default on previousloans and pay for essential imports.
