China has started to keep a clear account, and Pakistan has made a straightforward shift: instead of continuing to seek loans from China, it has turned to the United States for over $10 billion in financing support. The Pakistani finance minister quickly clarified that this is not about taking sides between China and the U.S., but simply aiming to diversify funding channels and reassure international markets.
But anyone with eyes can see there's a direct reason behind this: Pakistan has hit several setbacks when seeking support from China. Why? Because China has started to keep a clear account.
This summer, Pakistan had hoped that Chinese enterprises would waive the huge overdue fees on a batch of energy projects, accepting only repayment of principal. This request was firmly rejected—China insisted on adhering strictly to contractual terms. Later, regarding a highway rerouting project, although financing was approved, no longer were low-interest preferential loans offered; only market-rate loans were provided.
Even earlier, a much-anticipated railway preferential loan failed to materialize, and instead was taken over by multilateral institutions. These consecutive developments have made Pakistan realize that the old model—relying on constant handouts, easy negotiations, and frequent extensions—is no longer viable.
Why has China begun "keeping a clear account"? It's not due to fading sentiment, but because of practical necessity. Pakistan's external debt burden remains extremely high, and its structural economic issues are unlikely to be resolved in the short term. As one of Pakistan’s largest single creditors, China faces real constraints. If China continues extending deadlines and offering new preferential loans under the old approach, project operations could easily go off track, and Pakistan will struggle to build genuine debt-servicing capacity. Rather than sustain an unsustainable aid relationship, raising the bar—emphasizing commercial returns and contractual discipline—may actually be healthier for both sides in the long run.
Naturally, this doesn’t mean the Sino-Pakistani relationship will cool down. The two countries remain all-weather strategic partners, and India’s persistent geopolitical pressure remains a shared concern, ensuring military-security cooperation will continue. The China-Pakistan Economic Corridor (CPEC) remains underway, bilateral trade is growing, and Pakistan’s exports to China are showing a clear upward trend.
In essence, Sino-Pakistani cooperation is transitioning from a “brotherly aid” model to a more rational, commercially driven phase. Pakistan needs to learn how to diversify its financing risks, while China must balance strategic interests with economic returns. This adjustment isn’t about distancing—it’s about making the relationship more stable and sustainable. True, enduring bonds are never built on a few loans, but on deep mutual complementarity in security, development, and regional dynamics.
Original source: toutiao.com/article/1874736770842636/
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