Pakistan bankrupt Very close to happening. Let us tell you that Pakistan’s debt is increasing faster than its gross domestic product (GDP). This means that the economy’s ability to increase production is weakening. Islamabad think tank TabEdLab said in a report that unless there are comprehensive reforms and dramatic changes in the status quo, Pakistan will continue to sink deeper. Pakistan’s foreign debt has almost doubled since 2011. At the same time, domestic debt has increased six times. The report said Pakistan will have to repay an estimated US$49.5 billion of debt at maturity in FY2024 (of which 30 per cent is interest, and none of it is bilateral or IMF loans).
Pakistan’s huge debt burden
TabEdLab said Pakistan’s huge debt is “a formidable, existential and contextual challenge, which requires immediate and strategic intervention. Debt service is at a historic high, threatening the growing population’s social security, education, health and, importantly, Deprioritises needs like climate change The report said Pakistan’s debt profile is worrying, and its borrowing and spending habits are unsustainable.
Increasing population poses a challenge
The increasing demands of a growing population require more funding for social protection, health, education and climate change-related disasters, adaptation strategies and green transition. It says Pakistan’s climate and debt vulnerabilities exacerbate each other, but at the same time there is an opportunity to synergize and mitigate both existential crises.
Input: IANS
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