Are you seriously under the impression that China even wants to buy Pakistan's debt and that Pakistan will not need to borrow further once China takes over the current debt?
Yeah, it's not enough. Pakistan needs to catch up to India's half-a-trillion dollar external debt.
The external debt to GDP ratio increased to 21.1 per cent at March-end 2021 from 20.6 per cent at March-end 2020
www.businesstoday.in
Regarding India's external debt.. Pakistan beats India hands down when it comes to sovereign debt.... in case of India only 20% is sovereign debt... I am quoting fro RBI report pg 27 below..
Chapter 2 Classification of India’s External Debt
_____________________________________________________________________________________
This chapter analyses the trends in India’s external debt as classified according
to sectors, creditors, debtors, currency, instruments, maturity and
concessionality.
Sovereign debt, accounting for
18.8 per cent of the total external debt, rose 6.2
per cent to US $ 107.2 billion, as at end-March 2021, as an increase in external
assistance on government account more than neutralized a decline in FII
investments in securities issued by the Government of India (G-sec). Nonsovereign debt, accounting for 81.2 per cent of the total external debt, posted a
subdued growth of 1.2 per cent to US $ 462.8 billion, as at end-March 2021 as
the increase in the stock of NRI deposits was higher than the contraction in the
stock of commercial borrowings and short-term trade credit.
Commercial lenders were the biggest creditors accounting for about 37.4 per
cent of the outstanding debt as at-end March 2021, followed by NRI depositors
(24.9 per cent) and trade-creditors (17.1 per cent). Debt from commercial lenders
declined by 2.9 per cent to US $ 213.2 billion. While deposits from NRIs at US $
141.9 billion grew by 8.7 per cent, trade credit shrank 4.1 per cent to US $ 97.3
billion.
The largest borrowers were non-financial corporations with an outstanding debt
of US $ 255.4 billion as at end-March 2021, about 62 per cent of which was longterm in the form of loans through ECB route and FPI investments in debt
securities. As at end-March 2021, access to foreign debt was primarily through
loans accounting for 39.2 per cent, followed by deposits (26.2 per cent), trade
credit (17.6 per cent) and bonds and notes (17.0 per cent).
The US dollar continued to be the leading currency of denomination accounting
for 52.1 per cent of the total external debt as at-end March 2021. The share of
Indian rupee was higher at 33.3 per cent than a year ago, despite a drop in the
stock of FPI investment in G-Sec, as the outstanding deposits of NRERA account
rose much higher.
Long-term debt, accounting for 82.3 per cent of the total debt, grew 3.8 per cent
to US $ 468.9 billion as at end-March 2021. Short-term debt, constituting 17.7
per cent of the total debt, fell 5.4 percent to US $ 101.1 billion as at-end March
2021. Concessional debt, constituting 9.1 per cent of the total debt, rose 5.9 per
cent to US $ 51.8 billion as at end-March 2021.
2
