Rumors of Pakistan Economy Default until IMF Loans Return

While China benefits from economic growth under the China-Pakistan Economic Corridor (CPEC), Pakistan bears all the risk and is responsible for repaying the $46 billion loan. This large loan may not be a significant burden for China, but it is a significant burden for Pakistan. Some may view the situation as deceptive. Pakistani business people who are currently doing business abroad should consider shifting their investments back to Pakistan. The IMF, which has provided financial assistance to Pakistan, has been criticized for imposing large debts on underdeveloped countries that may take multiple generations to pay off. The success of the CPEC depends on China’s economy remaining strong and free of global sanctions, allowing it to freely trade with the rest of the world.