Pakistan's Foreign Debt: Managing $30 Billion in Debt Repayment Amid Economic Challenges
Saturday, 12 October 2024, 19:23
Pakistan Foreign Debt Crisis: Key Figures
Pakistan faces a daunting $30.35 billion in foreign debt repayments and interest obligations in the upcoming fiscal year (FY25). The State Bank of Pakistan is tasked with implementing necessary economic reforms to manage this substantial repayment burden.
Debt Repayment Breakdown
- Current Account Deficit: Significant pressures on external financing.
- Foreign Direct Investment: Insufficient to cover the increasing debt demands.
- Economic Growth: Threatened by high debt obligations and diminishing remittances.
- Debt-to-GDP Ratio: Continues to soar as repayments loom.
Addressing the Challenges
The economic landscape for Pakistan necessitates immediate action to bolster remittances and alleviate strain on foreign reserves. The IMF Extended Fund Facility remains crucial for continued support during this critical period.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.