International

11 months ago

Pakistan's Flawed External Debt Policy: A ticking time bomb

Pakistan's Flawed External Debt (symbolic picture)
Pakistan's Flawed External Debt (symbolic picture)

 

Islamabad (July 01,2023) : Pakistan's external debt has reached $126.3 billion, the highest in the country's history. The debt is growing at an alarming rate, and it is putting a strain on the country's economy. The government has been borrowing heavily to finance its budget deficit. The deficit has been growing in recent years, due to a number of factors, including the high cost of fuel imports and the war on terror.

The government's debt is now unsustainable. The debt-to-GDP ratio is at 86%, and it is expected to reach 90% by the end of the year. This means that Pakistan is spending more money on debt servicing than on education and health care. The government's flawed external debt policy is a ticking time bomb. If the government does not take steps to reduce the debt, the country could face a financial crisis.

Pakistan's external debt is a major problem. The debt is growing at an alarming rate, and it is putting a strain on the country's economy. The government's debt-to-GDP ratio is at 86%, and it is expected to reach 90% by the end of the year. This means that Pakistan is spending more money on debt servicing than on education and health care. The government's flawed external debt policy is a ticking time bomb. If the government does not take steps to reduce the debt, the country could face a financial crisis.

There are a number of things that the government can do to reduce the debt. These include:

Increasing taxes

Reducing spending

Privatizing state-owned enterprises

Attracting foreign investment

The government needs to take urgent action to reduce the debt. The longer the government waits, the worse the problem will become. The external debt crisis is a major challenge for Pakistan. The government needs to take steps to reduce the debt, or the country could face a financial crisis.


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