Comment on China Spent Years Lending to Low-Income Countries. That’s Becoming a Problem

China Spent Years Lending to Low-Income Countries. That’s Becoming a Problem

After eight months of negotiations the International Monetary Fund (IMF) announced last week that it would work with Pakistan to provide debt relief, boosting confidence in the country, which has been experiencing its worst economic crisis since its formation in 1947. As a result of its growing debt burden to Western and Chinese lenders, Pakistan’s government struggled to balance its basic functions, and its national grid has at times been forced to turn off power generation units to reduce fuel costs.

 

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