Pakistan is neck deep in debt, no way out is visible

10 months ago newscubic

Pakistan’s economy has collapsed. The neighboring country is trapped in the vicious cycle of debt. State Bank of Pakistan (SBP) has informed that its total debt and liabilities have increased by 27.2 percent to Rs 81.2 trillion ($ 131 billion) by December 2023. In the last one year alone, the country’s debt has increased by Rs 17.4 trillion. In the same period of the last financial year, this figure was Rs 63.83 trillion.

Asked for more loan from IMF
This web of debt will deepen further. Pakistan has asked for another bailout package from IMF. Besides, there is no atmosphere of political stability in the country. In the recently held general elections, no party in the country got majority. In such a situation, Pakistan seems to be failing on the economic and political front. According to State Bank of Pakistan, the biggest reason for this situation is the payment of external debt and interest. Loans received from IMF, FDI and other sources have increased by 26.17 percent to Rs 33.611 trillion. IMF loan alone has increased by 24.17 percent to Rs 2.142 trillion.

Loans increased by an average of Rs 48 billion every day
According to the information, the total liability has increased by 27.51 percent to Rs 4.6 trillion. In the first half of FY24, debt and liability servicing has seen a sharp jump of 28.82 per cent to reach around Rs 5.7 trillion. Pakistan’s debt continued to increase by an average of Rs 48 billion almost every day from December 2022.

The incoming government will have to face a big crisis
The country, which was already facing the caretaker government (Pakistan Government), is now waiting for the new government. Supporters of Imran Khan sitting in jail have won the maximum number of seats. But, the army is in no mood to hand over the government of the country to him. This debt is going to prove to be the biggest crisis for the incoming government. Recently, the Finance Ministry of Pakistan had also revealed that the debt has increased a lot between the year 2022-23.