China urges all parties to help Pakistan to resolve debt crisis

March 02, 2023 (MLN): Chinese Foreign Ministry spokeswoman, Mao Ning, has urged all parties to work together and play a constructive role in the economic and social developments of Pakistan, as Bloomberg reported. 

She pointed out that the financial difficulties faced by Pakistan and other developing countries, including Ghana, were due to the radical fiscal policies of a certain developed country. Though she refrained from naming the country, her statement comes amid rising tensions between the US and China.

In a regular press briefing in Beijing, Mao Ning expressed China's understanding of Ghana's difficulties and stated that Chinese financial institutions were in talks with Ghana to help settle its debt. She called on multilateral financial institutions and commercial lenders, from which developing countries mainly borrow, to participate in the debt relief efforts.

China has been a major player in providing financial aid to developing countries, with its Belt and Road Initiative (BRI) aimed at boosting infrastructure and economic development in these countries. However, concerns have been raised about the debt burden on these countries, especially with the economic impact of the COVID-19 pandemic.

This statement from China comes at a time when there is growing pressure on developed countries to provide debt relief to developing nations struggling with the economic fallout from the pandemic.

It remains to be seen how the US and other developed nations will respond to this call for debt relief from China.

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