Those include allowing a market-determined exchange rate for the country's currency, the rupee, and the reduction of fuel subsidies, which have become more costly amid the global rise in energy prices.

But the prospect of national bankruptcy finally forced him to bend — in late January, Pakistan lifted the artificial cap on its currency, causing the rupee to plunge 20% against the dollar in a few days.

"Pakistan's economic situation is a direct reflection of the misplaced priorities of the country for decades," said Kamal Madishetty, a researcher at the Institute of Peace and Conflict Studies in New Delhi.

This aerial view shows a flooded residential area in Dera Allah Yar town after heavy monsoon rains in Jaffarabad district, Balochistan province on August 30, 2022.

More recently, Pakistan has been a victim of climate change: catastrophic floods in June of 2022 put one-third of the country underwater, affecting 33 million people and causing billions of dollars of damage and economic loss.

These Chinese loans, he said, "are accompanied by opaque conditionalities, overlook long-term viability of projects, ignore environmental and social costs, and have interest rates that are usually 1-2 percent higher than those offered by OECD lenders."