Tuesday , June 18 2024

Will Pakistan's debt increase? Trapped in debt trap, will have to repay Rs 40 thousand crore in 2024

Pakistan loan news: Another big crisis has arisen in front of Pakistan, which is facing criticism from all sides for not being able to form the government till now despite the results of the general elections. Pakistan's debt is increasing much faster than its GDP. Which means that the economy's ability to increase production has been hindered.

Big claim of a think tank…

According to Islamabad-based think tank Tab Adlab, Pakistan needs radical change. Unless there is a comprehensive reform and dramatic change in the status quo, Pakistan will continue to sink into debt and move towards an inevitable default which will mark the beginning of a spiral.

How much debt does Pakistan have?

TabAdLab said Pakistan's debt has become “a serious, existential and timely” challenge, requiring immediate and strategic intervention. Debt repayments are also at historic highs, depriving the growing population of priority needs such as social security, education, health and, importantly, climate change. Since 2011, Pakistan's external debt has almost doubled and domestic debt has increased sixfold. Pakistan will have to repay an estimated debt of US $ 49.5 billion in fiscal year 2024. On which 30 percent interest is charged and it does not include any bilateral or IMF loan.