China's Debt Trap Diplomacy: How Bangladesh is Treading Sri Lanka and Pakistan's Path
China's debt trap diplomacy has been of great concern to many nations, and Bangladesh is the newest country to get trapped. The nation has been growing more dependent on Chinese loans to finance its infrastructure projects, something that has raised alarms over its sovereignty and economic stability.
The Debt Trap
Bangladesh has borrowed significantly from China to fund its infrastructure projects, such as the Padma Bridge and the Dhaka-Chittagong highway. Although these projects have upgraded the country's infrastructure, they have also contributed to the country's debt burden rising sharply. The debt-to-GDP ratio of the country has jumped, and it is now challenging for the government to repay its debts.
A Lesson from Sri Lanka and Pakistan
Bangladesh is not alone in falling into China's debt trap. Sri Lanka and Pakistan have also taken huge loans from China, only to struggle to repay them. Sri Lanka has had to cede its strategic Hambantota port to China on a 99-year lease while Pakistan has had to turn to the International Monetary Fund (IMF) to stave off a debt crisis.
Nepal's Crisis
Nepal is also experiencing the same crisis. Nepal has borrowed a lot of money from China to fund its infrastructure projects, such as the Kathmandu-Lhasa railway. The project has been delayed, and Nepal is finding it hard to repay its debts. The debt-to-GDP ratio of the country has increased dramatically, and it is becoming hard for the government to service its debts.
Conclusion
China's debt trap diplomacy is a major issue for most nations. Bangladesh, Sri Lanka, Pakistan, and Nepal have already fallen into it, and now are finding it hard to repay their debts. It is imperative that these nations exercise caution while taking loans from China and make sure that they have a well-planned strategy for repaying the loans. Otherwise, they will lose their sovereignty and economic stability.