SAFE has already given $4 billion in loans that are rescheduled every year due to Pakistan’s inability to pay them back. The Chinese have been extending loans from SAFE deposits, concessionary loans and commercial loans to help Pakistan to stabilise its external sector. Pakistan has budgeted $4.5 billion in foreign commercial loans but it has so far not received any financing due to poor credit ratings, high risks to debt sustainability and a weak macroeconomic situation. Since 2000, China has given $21.2 billion in loans in general budget support, which was 30% of the total lending to Pakistan, according to AidData. AidData reported that with 161 loans worth $69 billion, Pakistan has China’s third largest country-level loan portfolio anywhere in the world, after Russia and Venezuela.
