Pakistan’s
external debt is predicted to cross the staggering US$75 Billion mark.
The debt situation has steadily worsened over the course of the last
year as the government has continued with its policy of incessant
borrowing from local and foreign institutions. While contracting loans
is not unique to this government, the rate of increase in loan
accumulation is certainly unprecedented.
The year
2016 proved to be a record setter in terms of the debt contracted by the
government. Pakistan’s foreign debt stood at Rs.74 Trillion (US$72.98
Billion) after the first half of 2016 and during the last fiscal year,
Pakistan’s debt increased by a record US$7.9 Billion. In the space of
three-odd years, the government has taken US$25 Billion in foreign
loans, out of which US$11.95 Billion was used to service existing loans.
During the same period the government has borrowed US$30 Billion (Rs.
3.1 Trillion) from local banking institutions.
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