Pakistan's Debt Dilemma: Navigating a Fiscal Storm
Pakistan faces over USD 23 billion in external debt dues this fiscal year. With total debt soaring to Rs 76.01 trillion, the country is relying heavily on rollovers from friendly nations. Payments to international creditors remain a major fiscal challenge despite government claims of economic recovery.
- Country:
- Pakistan
Pakistan is grappling with a massive external debt burden, as it owes over USD 23 billion during the current fiscal year, starting July 1. Media reports highlight that the nation's total debt hit an alarming Rs 76.01 trillion by March.
Specifically, Pakistan's external public debt stands at USD 87.4 billion, sourced from government external loans and credits from the IMF. Alarmingly, USD 12 billion of this year's external debt obligations are temporary deposits from nations like Saudi Arabia, China, the UAE, and Qatar.
If these countries refuse to extend their deposits, Pakistan will face intensified financial stress, having to pay over USD 11 billion to international creditors and lenders. This includes bonds, commercial loans, and multilateral repayments despite government claims of economic revival.
(With inputs from agencies.)
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