Friday, February 3, 2023

China's Economic Risks in Egypt and Pakistan

 The Middle East Institute posted on 2 February 2023 an analysis titled "Pakistan and Egypt: China's Distressed Assets" by John Calabrese.  

China's economic footprint in Egypt and Pakistan has expanded greatly since the inception of the Belt and Road Initiative and so has its stake in their economic and political stability.  The economies of both countries have weakened and both have turned to the IMF for help, which wants to see economic reforms.  China holds about 30 percent of Pakistan's external debt and much less of Egypt's debt but still amounting to nearly $8 billion.  Consequently, China's risk exposure in both countries is high.