Pak’s External Debt Surges to $135.1 Billion

News Desk

ISLAMABAD: Pakistan’s external debt has nearly doubled over the past decade, escalating from $68.7 billion in 2015 to a staggering $135.1 billion by 2025, as revealed in a recent World Bank report.

This alarming increase highlights the country’s growing reliance on external financing to address economic challenges.

The report indicates that public and publicly guaranteed debt constitutes $107.1 billion of the total, while private debt accounts for $17.6 billion, and short-term borrowing stands at $10.45 billion.

China emerges as the largest single creditor, with $22.4 billion outstanding, followed by the World Bank and the Asian Development Bank.

The rapid pace of this borrowing is particularly concerning, as it primarily aims to fill external financing gaps, bolster reserves, and service existing loans.

This surge in debt raises significant concerns for the Pakistani economy, as it may lead to increased fiscal pressure and limit the government’s ability to invest in essential services.

Citizens could face the repercussions of austerity measures or reduced public spending as the government navigates this financial landscape.

Looking ahead, policymakers are expected to engage in discussions regarding debt management strategies and potential reforms to stabilize the economy.

The upcoming meetings with international financial institutions will be crucial in determining the path forward for Pakistan’s economic recovery.