According to the most recent International Monetary Fund (IMF) report, which includes state-owned commercial banks, 30% of Pakistan foreign debt is owed to China.Citing a document from the international money lender, it was stated that the debt has increased by 3% from February’s numbers, when it stood at 27%.
According to the IMF report, Pakistan’s debt to China has increased from $25.1 billion in February to $30 billion after being revised upward by $4.6 billion.According to the report, Chinese aid to Pakistan is three times bigger than IMF debt and exceeds total funding from the World Bank and Asian Development Bank.
Beijing is currently acting like a global money lender by supplying funds amid a balance of payments crisis, in contrast to the World Bank’s concessionary project funding.
This week, the IMF’s executive board approved the transfer of $1.1 billion to Pakistan, preventing the fear of an impending default and providing Islamabad with a much-needed bailout package.
According to the IMF report, official financing for the current fiscal year includes $7 billion in rollovers of previous commitments and $4 billion in new commitments, including financing from China, Qatar, Saudi Arabia, the United Arab Emirates, and IFIs like the World Bank, Asian Development Bank, and Islamic Development Bank.