ISLAMABAD: The foreign debt of Pakistan has soared by 75 per cent during the last 9 years which has raised the country’s external debt to the highest mark of $65.5 billion.
According to the State Bank of Pakistan (SBP) data Pakistan external debt has registered increase by 75 per cent from 2006 to 2015. Foreign loans amounting to $27 billion were obtained during the last two and a half year. The report said that if Pakistan continued to acquire external loan at this pace then its loan is likely to swell to 90 billion dollars in 2020.
The country’s foreign exchange reserves have reached the level of 20.83 billion dollars. Owing to decline in country’s exports by 200 per cent, the trade deficit has swelled to alarming proportion. In the second quarter of the current financial year 2016, country’s exports crisis has entered into 4th quarter persistently.
According to the economic experts, Pakistan will have to obtain more funds from International Monetary Fund (IMF) and other financial institutions to return its loans. The process of paying back the foreign loans secured from IMF and World Bank will be commenced 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 Minister for Finance Senator Ishaq Dar has given indication for acquiring more foreign loans. According to him more loans will be secured to meet fiscal deficit.
