Pakistan will fall further into the debt trap! Now demand 2 billion dollars from this country

There are elections in Pakistan on February 8, but instead of conducting elections peacefully, the caretaker government there is busy with other worries. The most important thing in this is the economic crisis of the country and the search for necessary solutions to get out of it. In this regard, the Pakistani government has appealed to China.

Pakistan, which is facing financial crisis, has knocked on the doors of China. The biggest problem of Pakistan at present is the shortage of cash. In view of this, the Pakistani government has demanded a loan of 2 billion dollars from Xi Jinping's government. China is a close ally of Pakistan and both keep swearing each other's friendship. Anwar Ul Haq Kakar is currently working as the acting Prime Minister of Pakistan.

Kakar himself has written a letter to Chinese Prime Minister Li Qiang asking him to release this loan as soon as possible. The government of Pakistan has thanked China because the Chinese government has been helping Pakistan out of its economic crisis from time to time by providing billions of dollars of assistance. Pakistan is using the $4 billion loan issued by China to repay the loan installment and stabilize its foreign exchange reserves.

UAE, Saudi Arabia, IMF loan

Before this, UAE and Saudi Arabia have also helped Pakistan through loans. Saudi Arabia even deposited an amount of 5 billion dollars in the State Bank of Pakistan as a loan so that it does not go bankrupt. Pakistan will also need the help of International Monetary Fund i.e. IMF. In such a situation, the interim government of Pakistan has requested the IMF to send its mission for talks. Islamabad expects a loan of USD 1.2 billion from the IMF.

What is the total debt of Pakistan?

Pakistan is in a state of financial poverty. If IMF, World Bank and countries like China, UAE demand their loans or stop helping, then Pakistan can go bankrupt without wasting a moment. According to a data of 2023, Pakistan has a debt of about 125 billion US dollars. Pakistan has taken about one-third of this entire amount from China. Now if China approves any more loan then it is obvious that this will further increase the debt pressure on Pakistan.