Pakistan has debt problem, but not China debt problem

Karachi – Pakistan has a debt problem for sure, however, it does not have a China debt problem, said Finance Minister Asad Umar. Speaking to the China Global Television Network (CGTN), at the China International Import Exhibition (CIIE), his remarks came in response to accusations that China was using debt diplomacy to expand its influence worldwide.

Umar has said that the China-Pakistan Economic Corridor (CPEC) was an excellent example of cooperation between the two countries and was beneficial for both sides. Responding to the idea of CPEC being a sinister move by China to cause economic problems to Pakistan, he said it was “absolute nonsense”.
He made the comments in response to statements that China was using “debt diplomacy” to expand its influence worldwide.

Under CPEC, a pilot project of the Belt and Road Initiative (BRI), the Pakistan was granted Chinese loans to build billion dollar infrastructure projects, from railways to roads. CPEC has become the poster child for the Chinese debt trap allegations. Umar said China’s debt was not more than 10% of the total, which was a not a significant figure.

He said the percentage of debt-to-GDP of the country was high but still manageable. “The reason why debt sustainability is a problem in Pakistan is that we don’t have enough exports; we are not generating enough foreign currency inflows to be able to service the debt, and that’s the fundamental problem,” he added.  

"Monitoring Desk"

Leave a Reply


Finance Minister chairs ECNEC meeting to approve development projects across country
ADB to finance infrastructure revamp worth $300m in four Punjab cities
Beijing, Islamabad to improve infrastructure in Pakistan: Chinese daily
NEPRA seeks report on Karachi power breakdown
Pakistan plans to scrap upfront tariff regime for captive power plants
New FTA with China expected by June next year
Chinese investors keen on joint ventures
Chinese enterprises undertake over 3,000 BR projects in regional countries
Chinese media lauds PM Imran’s vision of poverty alleviation
China investing $9b in various projects in Pakistan: Zaidi
Study shows GDP increase attributed to CPEC Projects
CPEC projects to be expedited in KP
China and Pakistan want Afghanistan to join CPEC project
CPEC crucial for enhancing Pak-China bilateral ties: Chinese envoy
CPEC will usher socio economic development of both countries: Saleem Jhagra


About is Pakistan’s leading regional connectivity media & communication/outreach platform, dedicated to profiling and promoting the business activities, news and views on the regionally connected business corridor across OBOR. 


Addional Information

 Ethics Policy     Advertise
 Terms & Conditions
 Contact Us