After Pakistan and Sri Lanka fell under severe Chinese loan debt, Bangladesh now sounded alert, warning developing countries to think twice as much more loans through the Belt and Chinese road initiatives (BRI) as global inflation and slowed growth in add Tension in tensions in strains in the developing country markets that are indebted and vulnerable.

The Pakistani economic crisis is well known and Sri Lanka also only sees dramatic changes in the government followed by a massive public rebellion over a deep financial burden, Sky-Rocketing inflation triggered by the depletion of foreign reserves. Nepal, also said to estimate the economic crisis and earlier this year prohibits the import of vehicles and other luxury goods, due to a decrease in foreign exchange reserves.

One of the common factors between these countries is that they are all part of the BRI Chinese global infrastructure development strategy aimed at investing by Beijing in nearly 70 countries. The Chinese government, through BRI, invested in building ports, roads, bridges, dams, power plants, trains, etc. China is known to have a BRI offer with three countries, two of them have staggered under the large -scale and large economic crisis and the remaining one predicted one.

The BRI ‘Trap’

According to the organization for Economic and Development Cooperation (OECD) China’s Belt and Road Initiative (BRI) Development strategies aim to build connectivity and cooperation in the six main economic corridors which include China and: Mongolia and Russia; Eurasian countries; Central and Western Asia; Pakistan; other countries of the Indian sub-section; and Indocina.

China has been accused of being a silent orchestra from the economic crisis that the two South Asian countries – Sri Lanka and Pakistan – shaken below. While experts have warned for years of low and middle income countries against China’s “debt trap” diplomacy, Beijing has been able to captivate vulnerable countries such as Sri Lanka and Pakistan with unbearable investment plans to pocket a billion dollar project Dollar dollar dollar dollar under BRI initiative.

For years of non-sustainable Chinese loans to haunt the struggle economy, encouraging international monetary funds (IMF) to save them, is what experts refer to as “diplomacy of the Chinese debt trap”.

After the collapse of Sri Lanka & Pak, experts sound alarm on the ‘debt trap’ of China
With the Sri Lanka crisis, experts have warned that other countries in the region also need to call on their own governments to attract the lessons needed from the island state.

Professor Dr. Rasul at the Department of Economics at the International University of Agriculture and Business Technology (IUBAT) warned of excessive dependence on foreign loans, which according to him could make vulnerable countries, EFSA reports (European Foundation for South Asian studies).

MD. Maruf Mozumder in his article at The Daily Observer also recommended strongly that Bangladesh attracted serious lessons from Sri Lanka. He suggested that the tendency of Sri Lanka to sometimes be more inclined to China than India has a problem, adding that “it is important to note that because of debt trap diplomacy, China is building a strong geopolitical position with great profits by giving small loans to developing countries in South Asia “.

It was a “fairy tale” that was played by China which not only aggravated the debt crisis in countries such as Sri Lanka and Pakistan but also left them with projects that had not yet been completed billions of dollars, experts said.

One of the reasons in a row -in a row of Pakistani leaders to avoid reform is that they believe it is easier to accept fairy tales played by China. Far from being an economic savior for Pakistan, however, it is now clear that Beijing uses the Chinese-Pakistan Economic Corridor (CPEC), foolishly approved by PM Shehbaz, Nawaz’s brother, as a mechanism to enslave Pakistan, “A TOI report quoted Quoted quoted quoted by a TOI report, as a mechanism to enslave Pakistan, “a TOI report quoted by TOI quoted quoted, as a mechanism to enslave Pakistan,” a Toi Toi report quoted by Toi quoted by a Pakistan, “a The Toi Toi report quoted by Toi who quoted as enslaving Pakistan, “a Toi Toi report quoted by Toi, as enslaving Pakistan Toi who quoted TOI TOI Michael Rubin, a senior colleague at the American Enterprise Institute, said.

Bangladesh, Laos the next target of Chinese debt traps?

Minister of Finance Bangladesh AHM Mustafa Kamal Baru -this new warning of developing countries for taking more loans through the BRI China initiative.

Kamal, in an interview with the Financial Times, referred to Sri Lanka, where infrastructure projects supported by China that failed to produce returns had caused a severe economic crisis, the Minister of Finance said, “Whatever situation occurs throughout the world, Everyone will think twice to approve this project (BRI). “

Everyone blames China. China can’t agree. That’s their responsibility, “Kamal said.

Bangladesh last month became the latest Asian country approaching the IMF for assistance in the midst of commodity prices that jumped after the full scale of Russia to Ukraine tense foreign reserves.

The country, part of BRI China’s initiative, reportedly owed around $ 4 billion or 6 percent of its total foreign debt, to Beijing.

Bangladesh also searched for up to $ 4 billion more than various multilateral and bilateral lenders, including the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank and Japan International Cooperation Agency, Kamal said.

Laos, Southeast Asian country, is also at high risk of default, owned by China, because the country has taken large loans from Beijing to build large -scale infrastructure projects, providing new momentum to the ‘debt trap’ diplomacy.

Laos has a high risk because it is very indebted to China for large -scale infrastructure projects, financial experts said in Ani’s report.

The Moody International Rating Board reduced Laos’s credit rating to CAA3 in mid -June, quoting “very high debt loads and external debt due with reserves (foreign exchange).” The agency warns that Laos’s default risk will remain high, the Singapore Post reports.

According to a report issued by the World Bank in April, the initial estimate indicates that the total public debt of Laos and the public guaranteed reached 88 percent of the gross domestic product in 2021. The debt was valued at 14.5 billion US dollars, around half of it owed to China with Loans to fund projects including China-Laos trains.

Railway Laos-China 418 km is a joint venture between Beijing Railway Group and two other Chinese government-owned companies with 70 percent shares and Laos state companies with 30 percent.