Part 9/15:
Pakistan's debt profile illustrates this concern. It has borrowed extensively from China, with estimates suggesting that around 20% of its external debt is owed to China, largely linked to CPEC projects. With a total external debt of over $112 billion, Pakistan faces mounting pressure—especially as COVID-19 has dampened economic growth, reduced exports, and drained foreign reserves. The fear is that if Pakistan defaults on its loans, it could fall into a debt trap, compromising sovereignty and economic stability.