Key Points

Pakistan, a Maldives Insight report cited, has realised that China has been exploiting it through its China Pakistan Economic Corridor (CPEC) project and giving them Chinese weapons system of questionable efficacy.

"Under the CPEC, Pakistan has run up a huge debt to Beijing. Now Islamabad has little option but to approach the International Monetary Fund, controlled by Washington, for bailout packages to meet its external debt repayment obligations. In 2024, China was the largest bilateral creditor of Pakistan; with Islamabad’s debt liability to Beijing being USD 29 billion. The International Debt report of World Bank for 2024 put the total external debt of Pakistan at USD 130 billion," it stated.

In 2024, Pakistan was among the top three loan recipients from the IMF. The IMF has worked out a USD 7 billion bailout package for Pakistan. On May 9, the IMF Executive Board sanctioned the disbursement of USD 1 billion under the Extended Fund Facility of the IMF out of this package amount.

However, the report mentioned that Pakistani people have not benefited through CPEC projects with power tariffs remaining very high as Chinese companies charge even for unused capacity in power plants. At the same time, Pakistani fishermen have been deprived of their fishing reserves at Gwadar Port. Furthermore, the Baloch Liberation Army (BLA) has launched an offensive against Chinese nationals present in Pakistan and Pakistani security forces to protest China's exploitation of the resources of Balochistan with the help of the Pakistani establishment.

According to the report, US President Donald Trump, during his first term, suspended military assistance to Pakistan on the ground that it had failed to act against Afghan Taliban and Haqqani Network terror modules who were using Pakistani soil to carry out depredations in Afghanistan. Since then, Pakistan had become increasingly reliant on China for military equipment.

"But, in Pakistan’s recent short war with India, Chinese weapon systems like HQ-9 and HQ-16 Surface to Air Missiles and J-10C and JF-17 fighter aircraft could not prevent Indian attacks on terrorist camps and strategic airfields deep in Pakistan, nor could they inflict any major damage on Indian installations. Islamabad is now under pressure to run to the US once again for the supply of reliable weapon systems," the report titled 'Beijing alarmed over upswing in US–Pakistan relationship' detailed.

It further stated that Beijing is keeping a "close watch" on Islamabad’s growing bonhomie with Washington, sensing that this may cause a fissure in its ironclad relationship with Beijing. Immediately after a visit to New Delhi last month, the Chinese Foreign Minister Wang Yi had rushed to Islamabad to attend the Pakistan–China Strategic Dialogue to review the all-weather ties between both countries.

"Learning from experience, Beijing cannot afford this relationship to develop. America is sensitive over Chinese military presence at Gwadar Port. Yielding to Washington’s pressure, Islamabad did not allow the Chinese Navy to make a port call at Gwadar during the joint naval Sea Guardians III exercise between the two countries in November 2023. Setting up a military base at Gwadar to establish its influence in the Indian Ocean region is the ultimate goal Beijing wants to attain through the CPEC," it added.

- IANS