China on Pakistan Economic Crisis: Pakistan is currently facing a serious economic crisis. The country’s economy seems to be completely collapsing. There is a huge shortage of Foreign Exchange Reserves in the country and the government is refraining from importing even essential items. Many countries are now turning away from giving loans to the Shehbaz Sharif government. The government is pleading with the IMF for loans as well. Meanwhile, Pakistan has also been betrayed by its special friend Dragon.
Pakistan’s foreign exchange reserves have reached a 10-year low. In such a situation, the Shahbaz government is appealing to many other countries including China for loans.
China betrayed Pakistan
China’s Xi Jinping government has refused to give an unconditional loan to Pakistan, while giving relief to Sri Lanka in repaying the loan. Michael Kugelman, director of the South Asia Institute at the Wilson Center in the US and an expert on Pakistani affairs, wrote, “Beijing has offered Sri Lanka a 2-year relief to repay the debt.” At the same time, it has not offered debt relief to its close ally Pakistan, which is dangerously close to default.
Experts are also expressing surprise
Expressing surprise, Michael Kugelman further said, “America had asked Pakistan to urge China to seek debt waiver.” What can explain China’s decision not to give debt relief to Pakistan? At the same time, about 30% is outstanding on Pakistan.
Serious economic crisis in Pakistan
On 31 January, the International Monetary Fund (IMF) mission started talks with Pakistan for the ninth review of the US $ 7 billion aid package amidst severe economic crisis. Please tell that there is a huge shortage of foreign exchange reserves in Pakistan. The value of rupee is continuously decreasing against the dollar. Due to the skyrocketing inflation, the problem of bread on June 2 has arisen in front of the people. All these factors are giving further impetus to the economic crisis.
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