Beijing has invested about $128b in energy projects in Belt and Road countries since 2001. The slowdown in spending last year came as the government cracked down on capital outflows, scrutinizing companies that expanded rapidly overseas.
The World Bank estimates that Pakistan’s largest metropolitan city Karachi– also its economic hub, needs $9 to $10 billion financing over 10-year period to meet its infrastructure and service delivery requirements.
China’s Belt and Road Initiative (BRI) hopes to deliver trillions of dollars in infrastructure financing to Asia, Europe, and Africa. If the initiative follows Chinese practices to date for infrastructure financing, then BRI raises the risk of debt distress in some borrower countries,