China has become Pakistan’s largest creditor with loans amounting to nearly $29 billion, according to a report by the World Bank.
The report states that Pakistan, with a population of 240 million, is among the top three countries borrowing from the IMF this year.
The World Bank’s International Debt Report indicates that Pakistan’s debt-to-exports and debt-to-income ratios point to a weak financial position.
According to the World Bank, Pakistan’s total external debt (including the IMF) in 2023 reached $130.85 billion, which is 352% of its total exports and 39% of its Gross National Income (GNI). Pakistan’s external debt servicing is 43% of total exports and 5% of GNI.
The report also reveals that China holds the largest share of Pakistan’s debt, accounting for 22%, or approximately $28.7 billion. This is followed by the World Bank with 18%, or $23.55 billion, and the Asian Development Bank with 15%, or $19.63 billion. Saudi Arabia is Pakistan’s second-largest bilateral lender, with a total loan share of 7%, or about $9.16 billion.
