How much more can Pakistan rely on debt?

Pakistan is now well known for its economic instability which is the main reason for increased reliance on debt from the past few years.

Pakistan took loans from the IMF and World Bank, and the list goes on including the states that have friendly relations with Pakistan. But the question remains how much more can Pakistan rely on debt?

Pakistan’s reliance on debt

Pakistan has been undergoing an economic crunch since the beginning. If we talk about Pakistan then it is argued that Pakistan is a poor country whereas the people of Pakistan are quite rich. Though the quantity of elites is low, yet, some civil elites are richer than the state itself.

In this situation, some questions may come to your mind:

How much debt does Pakistan hold?

The debt of Pakistan is increasing time and again with the increasing challenges it is facing. Recently, in June 2023, we got to know that the debt has reached around 124.3 UD bn. This is far more than what was the debt back in 2006. Yet the debt keeps on changing with time.

How much debt does Pakistan have to pay in 2023?

Pakistan needs to pay around 124.3 USD bn till now but the debt is not stopping here. Due to the instability in the economy of Pakistan, the debt from various stakeholders and states is increasing day by day.

Who does Pakistan owe the most debt to?

Pakistan owes the most debt to the creditor which is one of the old good friends of Pakistan, China. Though there are many projects on which Pakistan and China are working together like CPEC and BRI, the question remains for how long Pakistan can rely on debt even if it is from China?

Is Pakistan’s debt sustainable?

This is the most asked question and the answer is that the debt Pakistan is facing right now is out of the sustainable debate. It has reached the level where a state like Pakistan cannot afford to sustain it either.

Conclusion

To summarize, Pakistan is in a high level of debt from different international organizations which is not only making the image of the state gloomy internationally but is a threat to the economic sector of the state as well. The talk is out of looking for sustainable solutions for the debt and the state might face default in such a situation.

Join Our Knowledge Hub: Sign Up for Diverse Insights Today!