China is hesitant to financially help sinking ships Pakistan and Srilanka

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China has not yet taken concrete measures to help its friends, Pakistan and Sri Lanka financially.

in the last couple of years America has China has been accused of using “debt diplomacy” to make the world’s developing countries more dependent on China. Despite this Sri Lanka And PakistanBoth China’s friends are facing a serious financial situation and rising inflation. This shows that the president of China Chi Chinfing The government is reluctant to give money to help them. According to Bloomberg, China has so far not taken any specific steps in relation to Pakistan’s $ 4 billion loan repayment promise, nor has it responded to Sri Lanka’s demand for a $ 2.5 billion loan. Whereas China had promised to help both countries.

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For this reason, China has also redefined the Belt and Road Initiative, just as China has refrained from interfering in the situation in Sri Lanka. Parliament on Monday elected a new Prime Minister of Pakistan, while protesters from Sri Lanka’s leaders are demanding resignations.

Beijing has reconsidered external lending in the last few years as its banks realized that these countries were less likely to give money back. This explains China’s growing debt and its declining willingness to spend money outside. Due to the rising corona in China, the strict shutdown continues, which is why China is facing economic problems. At the same time, the Fitch rating of Sri Lanka has become very poor. Sri Lanka will have to pay the next installment of the loan interest rate on April 18 and in case of non-payment it will default.

At the same time, Sri Lanka’s ambassadors to China this week said they sincerely hope China will give them the loan. But despite this, China’s role in helping Sri Lanka’s crisis is limited. President Xi himself has also asked to build small but beautiful projects in the Belt and Road project, projects where foreign cooperation should be a priority and avoid dangerous places and chaotic places. China’s ability to help other countries is limited in the balance of payments crisis. In particular, China’s economic aid is only related to some projects. Muttukrishna Sarvananthan, senior researcher at the Point Pedro Institute of Development in Sri Lanka, says even the IMF is slowly coming forward to help Sri Lanka and Pakistan. Which bilateral donor countries or international institutions will put their money into sinking ships like Pakistan and Sri Lanka.

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