China is Pakistan’s largest foreign development financing provider since 2012: Report

Gwadar Pro

Islamabad: China has been Pakistan’s largest foreign development financing provider since 2012, outspending the United States by a significant margin in recent years, a report said.

The latest report by AidData, a US-based international development research lab, reveals that Pakistan is the third-largest recipient of Chinese development finance globally, with a portfolio of US $70.3 billion.

The report, which claims to have drawn it from more than 5,300 sources, highlights that two percent of China’s investments in Pakistan between 2000 and 2021 were in the form of grants, while the majority was in the form of loans.

The energy sector received the most significant share of development finance at 40 percent or US $28.4 billion during the 2000-2021 period. General budget support and transport and storage were the next major recipients of Chinese financing, with 30 percent (US $ 21.3 billion) and 14 percent (US $9.7 billion), respectively.

The report also breaks down Chinese development finance administration-wise, noting that the PML-N government (2013-17) attracted the highest flows, totaling $36.2 billion during the 21-year period, followed by the PTI government with $19.6 billion, the PPP government with $10.4 billion, and the Pervez Musharraf government with $4.1 billion.

The data showed that 82 percent of projects committed until 2021 were “completed,” with 13 percent remaining “under implementation.”