Bilawal Bhutto Denies Pakistan Is in China’s Debt Trap, Says Beijing Provides ‘Soft Loans’ – News18

A day after IMF provided a long-awaited bail-out to cash-strapped Pakistan, Foreign Minister Bilawal Bhutto Zardari dismissed claims that his country is falling into China’s debt trap.

He made these remarks during an interview with the Japanese daily Nikkei Asia. “It is incorrect to claim that Pakistan is in China’s debt trap,” he said in a written interview during a visit to Japan.

In the Nikkei interview, Bhutto Zardari emphasized that most of China’s assistance to Pakistan comes in the form of investments or soft loans, refuting concerns of immediate default on debt despite the ongoing economic crisis.

“Most of the Chinese assistance to Pakistan is in the shape of investments or soft loans,” he said.

The International Monetary Fund (IMF) has agreed to provide USD 3 billion to Pakistan in badly needed relief to help bail out the impoverished country’s ailing economy.

Talks between Pakistan and the IMF had stalled in December after the global lender delayed the last crucial tranche of the previous bailout. The two sides were at odds over what the fund said was Islamabad’s unsatisfactory compliance with the bailout conditions.

While Pakistan’s economy has been affected by factors such as last year’s flooding, and rising food and energy prices due to the war in Ukraine, Bhutto Zardari stated that there is no imminent danger of default.

He called for increased trade with Pakistan and the acceptance of more Pakistani workers by other countries.

Bhutto Zardari also mentioned his country’s procurement of energy supplies from Russian companies and expressed concern over the impact of the war in Ukraine on food and energy prices in Pakistan.

The Pakistan foreign minister also touched upon its relations with neighboring India, highlighting Islamabad’s decision to boycott a Group of 20 tourism meeting hosted in Kashmir.