Pakistan's reliance on Chinese loans gradually and silently increasing: Sources
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*ISLAMABAD - Statistics and Figures reveal that Pakistan’s growing reliance on 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 ending June 30.*
The contribution of Chinese money as a portion of our overall borrowing has increased this year, according to the Economic Affairs Division. In the previous fiscal year, Pakistan had borrowed $10.7 billion worth of foreign loans and more than a fifth of this came from Chinese banks. Their share in the July-October period this year has increased to 33%.
Pakistan is facing a double loss since its imports are more than twice its exports, which result in a trading loss. This is not sustainable because its current dollar reserves ($10.2 billion) are not enough to pay for the essential imports that are necessary to support economic activity.
More than 60% of the money Pakistan borrowed from foreign institutions and governments last year was meant to keep the country’s foreign exchange reserves high enough so it could avoid bankruptcy or default on previous loans and pay for essential imports.
