ISLAMABAD: Pakistan owes 30 percent of its foreign debt to China, a recent report from the International Monetary Fund (IMF) said, which comprises state-owned commercial banks.
Bloomberg, citing the global money lender's document, noted that the debt is now 3 percent up in comparison with February's statistics, when it was at 27 percent. After being revised upwards by USD 4.6 billion, Pakistan owes a debt of USD 30 billion to China, from USD 25.1 billion in February, IMF reported.
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. As per latest data, 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 existing loans and $4 billion in new financing commitments from countries like China, Qatar, Saudi Arabia, the United Arab Emirates, and IFIs like the World Bank, Asian Development Bank, and Islamic Development Bank.
Official financing for Pakistan includes USD 7 billion as rollovers of existing and USD 4 billion in additional financing commitments, including from China, Qatar, Saudi Arabia, UAE, and IFIs as per the IMF’s recent report.
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