The government may tell you otherwise but Pakistan’s foreign debt has doubled over the past five years at an alarming rate.
Pakistan’s debt stood at Rs 13,626 billion in March 2013. Fast forward four-and-a-half years and Pakistan’s debt has increased to Rs 26,815 as of December 2017.
The federal government has sought loans amounting to Rs 2,140 billion over the last eight months. The depreciation of rupee by five percent has made matters worse and burdened the economy further with loans.
The IMF predicts that Pakistan’s debt would cross the $100 billion mark over the next one year.
In 2013-14, every Pakistani owed Rs 82,000. Now, he owns Rs 130,000.
The government that succeeds this one will have to borrow more to pay off Pakistan’s loans–which will not bode well for the economy.
Story first published: 12th April 2018