Pakistan Trapped in Vicious Cycle of Chinese Debt
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Pakistan owes over $125 billion in external debt, with about one-third owed to China due to predatory lending practices under the Belt and Road Initiative.
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The China-Pakistan Economic Corridor (CPEC) alone has over $25 billion in Chinese loans with high interest rates, trapping Pakistan in debt.
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Pakistan is forced to take on more Chinese debt just to service existing loans, creating a vicious debt cycle and potential for default.
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China could leverage the debt to take over strategic assets like the Hambantota port in Sri Lanka.
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Pakistan's economic crisis stems largely from unsustainable Chinese debts that provide short-term relief but erode sovereignty.