Sri Lanka and Pakistan, trapped in the debt trap of China, are mourning. While Sri Lanka is grappling with economic devastation, Pakistan is also worried about its ruin anytime. On the request of the troubled Sri Lanka, the Indian government has played the neighboring religion by giving billions of dollars in aid, but China, which robbed these two countries, has now considered them as ‘sinking ships’ and is shunning them. That too when the US has long been alleging that China is making developing countries dependent on the dragon with its ‘debt diplomacy’ trick.
According to a Bloomberg report, Pakistan and Sri Lanka are struggling with record inflation, but their ‘friend’ China is no longer ready to open its treasury. China has not yet promised that it will re-issue the $ 4 billion loan that Pakistan returned in March. Not only this, Sri Lanka has sought credit support of $ 2.5 billion from China, but so far China has not responded to it.
China is avoiding interference in politics too
China has promised that it will help both these countries, but its cautious attitude shows that there is a sign of revision of Xi Jinping’s Belt and Road Program. At the same time, China is also refraining from interfering in the tumultuous politics of both these countries. The new Prime Minister has arrived in Pakistan, while the pressure on the Rajapaksa government to resign in Sri Lanka has reached its peak.
“China has been rethinking its foreign debt for a long time because its banks have realized that they have given too much debt to countries whose loans have to be repaid,” said Rafailo Pantusi, senior fellow at Nanyang Technical University. The probability is very low. This has happened when China itself is facing economic trouble at the domestic level and more money is needed to deal with it. This is the reason why China wants to give less money now.
Sri Lanka and Pakistan are sinking ships for China
Sri Lanka said on Tuesday that it would intensify its talks with the IMF. Sri Lanka has now stopped paying foreign debt to save dollars for food and fuel supplies. At the same time, the new government of Pakistan is also pleading for help from the IMF so that the economy can be stabilized. However, the IMF is taking very slow steps regarding both these countries. This is the reason why China is also taking steps.