Chinese debt to drown a dozen poor countries including Pakistan: Report

Chinese debt to drown a dozen poor countries including Pakistan: Report

The terrifying scenes of economic and political instability from Sri Lanka and Pakistan are expected to play out across the globe, as China doesn't seem willing to forgive debts.

FPJ Web DeskUpdated: Thursday, May 18, 2023, 10:03 PM IST
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Last year skyrocketing prices for medicines and food as well as a power and fuel shortage saw Sri Lanka descend into utter chaos forcing the President to flee. This year Pakistan is seeing political turmoil while people fight for basics like flour in the streets, while its forex reserves are running out.

The one thing both of these countries have in common, is that they have taken billions in loans from China, and are among dozens of countries trapped by Chinese debt.

Entire countries could drown under debt

An analysis conducted by news agency The Associated Press, revealed that apart from Pakistan, Kenya, Zambia, Laos and Mongolia among others are at the brink of collapse due to the money they own to China.

The terrifying scenes of economic and political instability from Sri Lanka and Pakistan are expected to play out across the globe, as China doesn't seem willing to forgive debts.

The result is that tax revenues which are needed to provide electricity, education, food and other basic amenities in poor countries, are being eaten up by Chinese debt.

Caught in the dragon's stranglehold

The terms that China has laid down while lending money to these countries, also keep other countries that could help in time at bay.

The countries monitored during the analysis owe 50 per cent of their foreign debt from China, and are spending a third of their revenue in paying it back.

Sri Lanka and Zambia among them have slipped into default, while Pakistan isn't too far behind.

Kenya is also beginning to show signs of economic instability, and experts fear that if China sticks to its unforgiving attitude, it will trigger political upheavels in all the countries under its debt.

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