China is now Pakistan's largest loan provider with $29 billion

China has emerged as a major creditor for Pakistan with a $29 billion loan, while the country, home to 240 million people, ranks third among the largest recipients of loans from the International Monetary Fund (IMF).

According to the World Bank’s International Debt Report, Pakistan’s debt-to-export and debt-to-revenue ratios reflect a weakening fiscal position.

The report stated that Pakistan’s total debt, including IMF loans, stood at $130.85 billion in 2023, equivalent to 325% of total exports and 39% of the gross national income (GNI).

Similarly, the country’s total external debt servicing accounted for 43% of total exports and 5% of GNI.

China, considered a friendly nation, holds the largest share of Pakistan's total debt at 22% (approximately $28.786 billion), followed by the World Bank at 18% ($23.55 billion) and the Asian Development Bank at 15% ($19.63 billion).

Additionally, Saudi Arabia, referred to as a brotherly nation, is the second-largest bilateral partner and loan provider to Pakistan, contributing 7% of the total debt with $9.16 billion.

The report also noted that 45% ($58.88 billion) of Pakistan’s external debt comes from countries with bilateral ties, 46% ($60.2 billion) is owed to countries with multilateral arrangements, and the remaining 9% comes from private lenders.