KARACHI: The provincial administration of Sindh held a meeting on Tuesday to review and strengthen security measures taken to protect Chinese nationals working on various projects in the province after a deadly attack at the Karachi airport killed two of them earlier this month.
The two countries jointly initiated a series of energy and infrastructure development projects under the multibillion-dollar China-Pakistan Economic Corridor (CPEC) to aid Pakistan’s development. However, militants have persistently targeted Chinese nationals in different parts of the country, raising concerns about their safety and the prospects of the economic collaboration between the two nations.
A massive blast outside the Karachi airport in Sindh killed two engineers from China working in the energy sector on October 6, only a few days ahead of the Shanghai Cooperation Organization (SCO) Summit in Islamabad attended by dozens of high-profile foreign dignitaries in the federal capital.
“The security of CPEC and non-CPEC affiliated Chinese citizens must be coordinated and effective at every level,” Sindh Interior Minister Zia-ul-Hassan Lanjar, who presided over the meeting attended by law enforcement and intelligence officials, was quoted as saying in an official statement circulated after the meeting.
The minister also expressed concern over the safety of Chinese nationals working with Pakistani businesses.
“Sponsors must also be made aware of their responsibilities regarding the arrival and security of foreigners in Sindh,” he continued.
Lanjar maintained that with the formal support and cooperation of the Sindh government, the overall security for foreigners and Chinese workers affiliated with CPEC and non-CPEC projects must be improved.
Karachi has also witnessed attacks against Chinese nationals in the past.
In April 2022, a female suicide bomber killed three Chinese teachers in Karachi along with their local driver at a university, prompting the authorities in both Islamabad and Beijing to express concern about the violence targeting people from China in Pakistan.
The renewed focus on security underscores the ongoing threats faced by Chinese workers, and efforts being ramped up to prevent such incidents from jeopardizing bilateral ties and economic collaboration between the two countries.
Pakistani officials call for greater coordination on Chinese workers’ security after Karachi attack
https://arab.news/8vp4b
Pakistani officials call for greater coordination on Chinese workers’ security after Karachi attack
- Sindh government wants local sponsors of Chinese workers to ensure security of their guests
- Provincial minister promises official support to ensure security for CPEC, non-CPEC workers
Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’
- Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves
- Pakistan’s total external debt, liabilities stand at $138 billion at an overall average cost of around 4 percent, ministry says
KARACHI: Pakistan’s finance ministry on Sunday dismissed as “misleading” claims that the country is paying up to 8 percent interest on external loans, saying the overall average cost of external public debt is approximately 4 percent.
Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves, driven largely by a narrow tax base, chronic trade deficits, rising debt-servicing costs and repeated balance-of-payments pressures.
Over the decades, successive governments have turned to multilateral and bilateral lenders, including the International Monetary Fund, the World Bank and the Asian Development Bank, to support budgetary needs and shore up foreign exchange reserves.
The finance ministry on Sunday issued a clarification in response to a “recent press commentary” regarding the country’s external debt position and associated interest payments, and said the figures required contextual explanation to ensure accurate understanding of Pakistan’s external debt profile.
“Pakistan’s total external debt and liabilities currently stand at $138 billion. This figure, however, encompasses a broad range of obligations, including public and publicly guaranteed debt, debt of Public Sector Enterprises (both guaranteed and non-guaranteed), bank borrowings, private-sector external debt, and intercompany liabilities to direct investors. It is therefore important to distinguish this aggregate figure from External Public (Government) Debt, which amounts to approximately $92 billion,” it said.
“Of the total External Public Debt, nearly 75 percent comprises concessional and long-term financing obtained from multilateral institutions (excluding the IMF) and bilateral development partners. Only about 7 percent of this debt consists of commercial loans, while another 7 percent relates to long-term Eurobonds. In light of this composition, the claim that Pakistan is paying interest on external loans ‘up to 8 percent’ is misleading.
The overall average cost of External Public Debt is approximately 4 percent, reflecting the predominantly concessional nature of the borrowing portfolio.”
With respect to interest payments, public external debt interest outflows increased from $1.99 billion in Fiscal Year (FY) 2022 to $3.59 billion in FY2025, representing an increase of 80.4 percent, not 84 percent as reported. In absolute terms, interest payments rose by $1.60 billion over this period, not $1.67 billion, it said.
According to the State Bank of Pakistan’s records, Pakistan’s total debt servicing payments to specific creditors during the period under reference were as follows: the IMF received $1.50 billion, of which $580 million constituted interest; Naya Pakistan Certificates payments totaled $1.56 billion, including $94 million in interest; the Asian Development Bank received $1.54 billion, including $615 million in interest; the World Bank received $1.25 billion, including $419 million in interest; and external commercial loans amounted to nearly $3 billion, of which $327 million represented interest payments.
“While interest payments have increased in absolute terms, this rise cannot be attributed solely to an expansion in the debt stock,” the ministry said. “Although the overall debt stock has increased slightly since FY2022, the additional inflows have primarily originated from concessional multilateral sources and the IMF’s Extended Fund Facility (EFF) under the ongoing IMF-supported program.”
Pakistan secured a $7 billion IMF bailout in Sept. 2024 as part of Prime Minister Shehbaz Sharif’s efforts to stabilize the South Asian economy that narrowly averted a default in 2023. The government has since been making efforts to boost trade and bring in foreign investment to consolidate recovery.
“It is also important to note that the increase in interest payments reflects prevailing global interest rate dynamics. In response to the inflation surge of 2021–22, the US Federal Reserve raised the federal funds rate from 0.75-1.00 percent in May 2022 to 5.25–5.50 percent by July 2023. Although rates have since moderated to around 3.75 percent, they remain significantly higher than 2022 levels,” the finance ministry said.
“The government remains committed to prudent debt management, transparency, and the continued strengthening of Pakistan’s macroeconomic stability,” it added.
