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Why is China not helping Pakistan tide over their financial crisis?

The relationship between China and Pakistan is like that of a rich businessman who is having an affair with his maid. No one can predict what the businessman could to do to his maid. Here, the business man is China and the maid is …………………….

The entire world knows that the terrorist nation Pakistan has found its new friend in the form of China, after several nations including United States started to reduce the financial aide to it. Even China showed what a true friend can to, quite passionately, and helped Pakistan in every possible way.

But now Pakistan is getting drowned day after day, due to the debts. Even after it got a new Prime Minister in the form of Imran Khan —who is popularly known as terrorist Khan for having close links with terrorists— there is no improvement in the financial condition. That’s why Pakistan auctioned buffaloes, luxury cars and helicopters.

Yes, you heard it right. Even the buffaloes were auctioned.

People visit an auction of government owned used cars at the premises of Prime Minister House in Islamabad, Pakistan on Sept. 17, 2018.
People visit an auction of government owned used cars at the premises of Prime Minister House in Islamabad, Pakistan on Sept. 17, 2018

Now coming the question of uplifting Pakistan from debt, why China is not helping it. And the answer is, Pakistan is trapped by none other than China. Its a debt trap.

Meziechi Nwogu, an Analyst in the Oil and Gas sector explained how Pakistan is surrounded with debts saying “Pakistan’s debt crisis isn’t the result of any economic shock, it is due to China’s reckless lending policies. Under its Belt and Road Initiative, China has given substantial lavish loans to support various infrastructure projects in Pakistan, Sri Lanka, Myanmar, Nepal, etc. The catch is that these deals usually require that the money be spent on purchasing Chinese goods, services, and labor. Most of these lending are channeled through Chinese state-owned policy banks that are more concerned with advancing China’s foreign-policy goals — making new allies than with turning a profit”.

China–Pakistan Economic Corridor was the most ambitious project of China in Pakistan. Even though India opposed to this project right from day one as it was passing through Pakistan occupied Kashmir (PoK), Pakistan had fully supported the project.

It even acquired the land forcefully and who ever opposed this move, Pakistani government and its Army silenced them using its brute force. As a mutual help, China blocked the move of US to designate Jaish chief Masood Azhar a terrorist in United Nations. But Pakistan is in a deception that China is helping them, and is slowly falling into the trap of China.

A report had said “Pakistan will have to payback $100 billion to China by 2024 of total investment of $18.5 billion, which China has invested on account of bank loans in 19 early harvest projects, under CPEC. China has become the biggest lender to Pakistan after surpassing Japan”.

Looking at the present condition, Pakistan would take more than 50 years to repay the loan given by China. So, why will China even help Pakistan to overcome from the financial crisis? The more the debt of Pakistan is, the more China will benefit.

China is slowly trapping every small nation around it using the weapon of giving loan and the first nation to fall to this trap is Sri Lanka. Read more about it here:

Sri Lanka, the First Asian country to become the Victim of China’s Debt Trap 

An analyst Meziechi Nwogu “Without China’s billion-dollar loan, Pakistan’s Foreign reserves would have dipped below the minimum needed for further loans from the World Bank and IMF thus hindering its ability to secure affordable loans from the financial markets. However more Chinese credit may not be possible soon if Pakistan does not restructure its economy to boost growth and exports”.

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Hansika Raj

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