Pakistan China Debt Relief US: Antony Blinken Urges Pakistan Bilawal Bhutto To Seek Debt Relief From Largest Creditor China For CPEC Amid Flood
So far more than 1600 people have died in the terrible floods in Pakistan. Not only this, Pakistan has suffered a loss of $ 28 billion due to this flood. One third of Pakistan is still buried under the floods. After meeting with Pakistani Foreign Minister Bilawal Bhutto, the US Secretary of State said, ‘I would appeal to the Pakistani ally to talk with China on the important issue like debt relief and restructuring it so that Pakistan can recover from the floods as soon as possible. .’
China lent $26 billion to Sri Lanka and Pakistan
Pakistan has to pay $1.1 billion to the countries involved in the Paris Club. Pakistan has taken a loan of 10 billion dollars from rich countries like Japan, France, Germany and America. At the same time, Pakistan has to return $ 16 billion to the countries included in the non-Paris club. Of this, China alone has a debt of $14.6 billion. According to a Bloomberg report, Pakistan has taken a third of its total debt from its iron brother China. China has given loans of about $ 26 billion to Sri Lanka and Pakistan in the last 5 years.
While Sri Lanka has defaulted due to the burden of China’s debt, now the situation in Pakistan is also seen to be similar. Now the Pakistani government is going to talk to Dragon on the issue of debt. In Pakistan, China is running the CPEC project, which is called the debt trap. Under this, works worth $ 25 billion have been completed so far. The International Monetary Fund has warned Pakistan about the loan to be taken in the second phase of CPEC with China. Pakistan is currently pleading for loans and help from the IMF to many countries of the world.