China has shown reluctance to sanction a $6 billion loan for the China-Pakistan Economic Corridor (CPEC) railway sector project. The Chinese authorities are wary of Pakistan’s ability to service its mounting debt. The gross foreign exchange reserves of the State Bank of Pakistan (SBP) of around $13.4 billion largely consists of loans taken from China. Beijing has now expressed concerns over Pakistan’s ability to pay off its debt.
#cpecproject​ #chinapakties​ #pakistandebtcrisis