ISLAMABAD: The country’s foreign debt has surged by 75 percent to the highest mark of $65.5 billion during the last nine years.
According to State Bank of Pakistan (SBP) data, Pakistan external debt has registered an increase by 75 percent from 2006 to 2015. Foreign loans amounting to $27 billion were obtained during the last two and a half year.
The report said if Pakistan continues to acquire external loan at this pace then its loan is likely to swell to $90 billion in 2020. The country’s foreign exchange reserves have reached the level of $20.83 billion. Owing to decline in country’s exports by 200 percent, 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 the 4th quarter persistently.
Pakistan has floated Rs 2.5 billion euro bonds at a costly rate during the last two years in order to jack up its foreign exchange reserves.
According to economic experts, Pakistan would 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 would commence from 2017 and more loans would have to be obtained to pay back the existing ones.
