Beijing: China must ensure that the rising fiscal deficit in Pakistan does not “snowball” into a major financial crisis as it has invested heavily in the country, specially in the $46 billion CPEC project, official Chinese media said on Tuesday. Write-ups critical of Pakistan are rare in Chinese media, considering the all weather close relationship between the two. Citing Pakistan media reports it said Pakistan’s fiscal deficit surged to around 2.4% of GDP during the first half (July-December) of the fiscal year 2016-17, the highest in four years. “A surge in the country’s deficit would make it vulnerable to external shocks and would increase Pakistan’s chances of a debt default. As a major creditor and the largest investor in Pakistan, China has an obligation to safeguard its investments in Pakistan and ensure it can recoup its loans,” it said.

Source: Mint February 21, 2017 11:05 UTC