The China-Pakistan Economic Corridor (CPEC) development projects have been delayed in Pakistan due to political unrest and economic unrest, which has enraged China, according to The Friday Times.
China in particular is upset since it just gave Pakistan financial support and loaned the country money that was desperately needed.
According to diplomatic sources, the mishandling in Pakistan has the Chinese government “much irritated.”
“China renewed loans with the promise of IMF compliance, but this did not occur. The amount owed to the power plant is in the billions. The government of Pakistan gave guarantees, but nothing concrete occurred, according to a senior official.
However, the International Monetary Fund’s (IMF) funding is still in question, and according to The Friday Times, Pakistan is hardly able to carry out plans, much less finish the development projects funded by the CPEC.
The ambassador went on to say that China is likewise concerned about Pakistan’s political unrest.
We have heard that the IMF is asking a $8 billion loan arrangement owing to ongoing delays and foreseeable issues; this amount may increase with further delays when more repayments are received. Since inflation is also on the rise, the IMF also requests real interest from Pakistan.
The political instability that has overtaken Pakistan ever since former Prime Minister Imran Khan was detained earlier this week would make it more challenging to get a financial lifeline from the IMF and will worsen the economic situation there.
The 220 million-person South Asian nation has experienced stagnant growth and skyrocketing inflation over the previous 12 months.
Due to the significant depreciation of the rupee and the country’s declining foreign exchange reserves, Pakistan has had difficulty importing basic goods like food, which has resulted in tragic stampedes at distribution locations.