Pakistan Looks forward to new loans to repay old debts

by Subhechcha Ganguly
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Debt-trapped For the first time, Pakistan is about to experience a sovereign default. While there are many reasons for this, the nation’s gross public debt has soared by more than 1500% in only 22 years; the cause of this is irresponsible economic and debt policies.The State Bank of Pakistan, the country’s central bank, currently has $4.6 billion in foreign exchange reserves, which is not enough to fund a month’s worth of imports.By 2025, the nation will have to repay $73 billion.

The journal stressed that Pakistan’s poor management was to blame for the current scenario and that “difficult decisions have to be made, if Pakistan wants to be viewed as a responsible nation in the world community.” Nearly 220 million Pakistanis were without electricity on Monday due to a statewide power outage, which threatened to unleash chaos in the South Asian country, which is already experiencing fuel shortages throughout the winter.According to initial reports, the nation’s National Grid fell down at 7.34 a.m. local time, “creating a widespread disruption in the electrical system,” the country’s Ministry of Energy stated in a statement.

The overall debt and obligations of Pakistan have now skyrocketed to nearly Rs60 trillion. During the diamond jubilee year, the country added Rs 12 trillion, or one-fourth of the entire debt it had accrued over the last 74 years. Since 2019, there is no longer any commerce between Pakistan and India. Industrialists in Pakistan have emphasised the importance of expanding commerce with India, but India’s political class has not budged because of its fixation on Kashmir.

 

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