Foreign debt of the country has soared by 75 per cent during the last 9 years which has raised Pakistan’s external debt to the highest mark of $65.5 billion.
According to the State Bank of Pakistan (SBP) data, Pakistan’s external debt has registered an increase of 75 per cent between 2006 and 2015.
Foreign loans amounting to $27 billion dollars were obtained during the last two and a half years.
The report said that if Pakistan continues to acquire external loans at this pace, the loan is likely to swell to $90 billion by 2020.
The country’s foreign exchange reserves have reached the level of $20.83 billion. Owing to decline in the country’s exports by 200 per cent, the trade deficit has swelled to an alarming proportion. In the second quarter of the current financial year, the country’s exports crisis entered into 4th consecutive quarter.
Pakistan has floated $2.5 billion euro bonds at a very steep rate during the last two years in order to jack up its foreign exchange reserves.
According to economic experts Pakistan will have to obtain more funds from the International Monetary Fund (IMF) and other financial institutions to return its loans. The process of paying back the foreign loans secured from the IMF and the World Bank will commence from 2017 and more loans will have to be obtained to pay back these loans.
Talks are underway for starting a new program with IMF in 2016 as Finance Minister Ishaq Dar has given an indication to acquire more foreign loans. According to him, more loans will be secured to meet the fiscal deficit.
Foreign debt of this cntry is increasing becoz of increased money laundering by this corrupt govt.
and MR. Ishaq Dollar will say nah bruh don't worry all going well and every thing is under control
we can just pray that Allah give us a sincere leader like Quiad e Azam
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