China’s deepening footprint across South Asia—through strategic funding, high-interest borrowing, and massive infrastructure ventures—has left several countries in economic distress and political disarray. What once appeared to be fast-track development is now showing signs of structural collapse and rising dependency.

Businessman Rajesh Sawhney recently stated that “5 of 8 South Asian economies have fallen,” naming Pakistan, Afghanistan, Nepal, Maldives, and Sri Lanka. While the data doesn’t fully confirm this, financial strain and governance issues in the region are increasingly evident.

Bangladesh, though still functioning, is battling unrest, inflation, and a weakening investment climate. An interim regime has failed to establish firm control, while the military warns of a crisis born from within.

Sri Lanka, reeling from a 2022 debt default, remains burdened by inflation, poverty, and a currency in freefall. It owes more than half its external debt to China, with major Chinese-backed projects yielding little economic benefit.

Maldives shows GDP growth on paper, but nearly a fifth of its debt is owed to Beijing. Heavily reliant on tourism, any external disruption could push it into deeper instability.

Pakistan faces ongoing political upheaval and mounting unemployment. The China-Pakistan Economic Corridor brought roads and power—but also debt burdens and loss of economic autonomy.

Afghanistan is cut off from global markets and aid-reliant, while Nepal, despite appearing calm, faces financial imbalances due to costly infrastructure commitments.

Beijing’s investments may be building bridges—but they’re also tightening binds.