Kabira
BANNED
![](/styles/default/xenforo/ranks/General.jpg)
- Joined
- Jul 12, 2014
- Messages
- 14,383
- Reaction score
- -20
- Country
- Location
Example of Sri Lanka is given when people say to Pakistan to be careful about China investment. Not just foreigners but also opposition parties in Pakistan.
What exactly happened? Apparently Sri Lanka debt was so high that now 95% of their tax revenues goes to debt serving?
This will obviously not happen to Pakistan because tax revenues will increase to $39b next year and $80-100b by 2023. CPEC loan is $11 which Pakistan will have to pay starting 2022 over period of 25 years.
But I was wondering why Sri Lanka got fucked? How can you function with just 5% of tax revenues? By taking more loans I guess.
What exactly happened? Apparently Sri Lanka debt was so high that now 95% of their tax revenues goes to debt serving?
This will obviously not happen to Pakistan because tax revenues will increase to $39b next year and $80-100b by 2023. CPEC loan is $11 which Pakistan will have to pay starting 2022 over period of 25 years.
But I was wondering why Sri Lanka got fucked? How can you function with just 5% of tax revenues? By taking more loans I guess.