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Chinese Investment in Pakistan: Approaching Towards Bankruptcy

In: Mapping Chinese Investment in South Asia

Author

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  • Rahul Nath Choudhury

    (Indian Council of World Affairs)

Abstract

China has invested extensively in Pakistan and has also offered a huge volume of grants as aid and loan at a relaxed rate of interest over the last couple of decades. Several infrastructural facilities have been developed in Pakistan with Chinese capital. China is helping Pakistan to remove the infrastructural bottlenecks in Pakistan under the BRI scheme and has extended US$67 billion for this purpose. The loan of such an amount has created a financial crisis-like situation in Pakistan and has forced it to approach IMF and a few other agencies for bailout package. In this context, this chapter explains how the Chinese loans have created a debt trap and brought a financial disaster for Pakistan.

Suggested Citation

  • Rahul Nath Choudhury, 2023. "Chinese Investment in Pakistan: Approaching Towards Bankruptcy," Springer Books, in: Mapping Chinese Investment in South Asia, chapter 0, pages 145-174, Springer.
    • Handle: RePEc:spr:sprchp:978-981-99-1385-5_7
    DOI: 10.1007/978-981-99-1385-5_7
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    Keywords

    China; BRI; Pakistan; Trade; CPEC; Gwadar;
    All these keywords.

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