China becomes Pakistan’s largest creditor with $29bn loans

With almost $29 billion in loans, China has become Pakistan’s largest creditor. The nation, home to 240 million people, also ranks among the top three loan recipients from the International Monetary Fund (IMF) this year, according to a World Bank report. The World Bank’s International Debt Report released on Tuesday notes that Pakistan’s high debt-to-export and debt-to-revenue ratios indicate a weakening fiscal position. The World Bank put Pakistan’s total external debt (including IMF) at $130.85bn in 2023, accounting for 352 per cent of its total exports and 39pc of gross national income (GNI). Pakistan’s total external debt servicing amounted to 43pc of total exports and 5pc of GNI.