China has become a key creditor for Pakistan, extending loans worth $29 billion, as the country of 240 million people ranks third among the largest borrowers from the International Monetary Fund (IMF).
The World Bank’s International Debt Report highlights Pakistan’s worsening fiscal position, with concerning debt-to-export and debt-to-revenue ratios.
In 2023, Pakistan’s total debt, including IMF loans, reached $130.85 billion, equaling 325% of total exports and 39% of its gross national income (GNI).
Additionally, external debt servicing made up 43% of total exports and 5% of GNI, underscoring the financial challenges the country faces.