Debt Trap Diplomacy: A Focus on China's Influence in Pakistan and Sri Lanka

This research article explores the growing concerns surrounding China’s debt trap diplomacyin its relations with Pakistan and Sri Lanka. By examining China’s lending strategies throughthe Belt and Road Initiative (BRI), this paper highlights the geopolitical and economicmotivations behind Chinese investments and loans to these two South Asian nations. The studyinvestigates the challenges Pakistan and Sri Lanka face in meeting debt obligations to China,the subsequent consequences on their sovereignty, governance, and economic stability, as wellas the impact on regional power dynamics. Drawing upon financial data, historical debt trends,the paper argues that overreliance on Chinese loans has aggravated existing financialvulnerabilities, thereby leading to potential loss of political autonomy and economic instability.The paper further explores the role of international institutions, such as the IMF, World Bank,and ADB, in providing viable alternatives and strategies to mitigate the risks of falling into adebt trap. The findings suggest that without stronger governance reforms, greater financialtransparency, and reduced dependence on China, both nations will face continued economicand political challenges in the coming decades.