Pakistan under the burden of Chinese debt is not a true statement. Considering all the funds that China has provided to Pakistan, including the safe deposits, it amounts to approximately 20 percent. “And as I mentioned, most money came as a swap. They are reserves in Pakistani banks to avoid default.
The rest are concessional loans trying to help us create economic opportunities for more financial resources and revenue, which will help to avert our debt crisis, says report carried by Xinhua. Our real problem is the foreign debt from the Western financial institutions. Pakistan cannot pay them back because they are high-interest loans. Some of them, like private debt, are even higher,” said Ramay. “Pakistan also sold bonds in the Western market at a higher rate. Those all are causing real problems for Pakistan. Take the textile industry.
