Re: Pakistan’s external debt
The figures are from 2013, not current. Current situation is far worse…close to $70 bill.
Plus, Pakistan’s GDP declaration includes many of the domestic loans, state bank printouts, and withholding taxes (which essentially are liable to be refunded? Finance ministry is playing with money that it does not own. This glorious policy comes to you courtesy of the sharpest mind in finance, Ishaq Dar.
Considering Pakistan’s per capita income, the debt situation is woeful, and with little to no genuine increase in revenue generation, I wouldnt be surprised if we are looking at a default like situation, unless another major loan is signed off. We will need around $20 billion a year just for debt servicing, once the current IMF loan matures.