Global Rice News

KARACHI: In a recent statement, a senior Chinese diplomat affirmed that China has never pressured Pakistan to repay loans and even rolled over $2 billion in debt as the payment date neared. The diplomat also reassured that China will assist Pakistan in overcoming its foreign debt challenges.

Concerns have been raised by international financial institutions and China’s rivals, including the US, regarding the potential debt trap that Pakistan may fall into due to the massive borrowing required for Chinese energy and infrastructure projects. Transparency and terms of the loans, such as interest rates and repayment schedules, along with their long-term impact on Pakistan have also been a cause for concern.

China’s Belt and Road Initiative, specifically the China-Pakistan Economic Corridor (CPEC), has been a major project for China, with over $65 billion pledged for infrastructure developments in Pakistan since 2013.

According to the Chinese Consul General Zhao Shiren, Chinese debt only accounts for 13 percent of Pakistan’s total foreign payable debt. He explained that the objective of this debt is to help Pakistan escape the debt trap by providing necessary financial assistance.

Zhao emphasized that China is committed to helping Pakistan overcome its financial constraints. He also highlighted that Pakistan has the potential to increase its exports to Saudi Arabia, the United Arab Emirates, and China. As evidence of this commitment, China has recently opened its market to imports of red chili and beef from Pakistan. China is also providing technology for the production of hybrid rice and corporate farming, which could help bridge the trade deficit.

Although Pakistani exports to China have seen reasonable growth in recent years, commercial exchanges between the two countries are still relatively low compared to China’s overall $6 trillion trade.

Source: [Bold “Source”](https://www.arabnews.com)