Islamabad [Pakistan]: Bankrupt Pakistan's debt problems seem to be escalating as it is all weather-ally China has declined to restructure USD 3 billion in liabilities. Islamabad has requested Beijing to forgive debt liabilities owed to China-funded energy projects established under the China-Pakistan Economic Corridor (CPEC). Pakistan has already entered a sovereign debt "danger zone" with total liabilities and debts of USD 294 billion representing 109 per cent as a percentage of GDP as of 30 December 2020. With the combination of foreign commercial loans and safe deposits, Pakistan received over USD 4.1 billion that was over 50 per cent out of the total received foreign dollar inflows from creditors. These healthy inflows also helped to improve foreign exchange reserves and exchange rate stability.

Source: Mint May 30, 2021 17:34 UTC