According to a report by the World Bank, China has become Pakistan’s largest lender, providing approximately 29 billion dollars in loans.
The report states that Pakistan, with a population of 240 million, is among the top three countries to borrow from the IMF this year.
The World Bank’s International Debt Report also mentions that the ratio of Pakistan’s debt to exports and income from debt indicates a weak financial position.
In 2023, Pakistan’s total external debt (including IMF) reached 130.85 billion dollars, which is 352 percent of its total exports and 39 percent of its Gross National Income (GNI). Additionally, the payment of external debts constitutes 43 percent of total exports and 5 percent of GNI.
The report states that China holds the largest share of Pakistan’s debt at 22 percent, approximately 28.7 billion dollars. Following China, the World Bank holds 18 percent of Pakistan’s external debt, amounting to 23.55 billion dollars, while the Asian Development Bank holds 15 percent, amounting to 19.63 billion dollars. Saudi Arabia is Pakistan’s second-largest bilateral lender, with 7 percent of the total debt, approximately 9.16 billion dollars.
