Pakistan’s External Liabilities A Record All-Time High At $106 Billion
Pakistan’s external liabilities have touched a record all-time high at $106 billion, according to Geo TV. For the first time in history at the end of the third quarter of the current financial year on March 31st, it stood at about $106 billion, state bank figures showed.
The situation is similar for internal debt. If combined external debt and liabilities and internal debt are Rs35095 billion collectively. The number forms 75 percent of the total GDP when according to the constitution, it must not be above 60 percent.
According to the official documents, Pakistan’s external debt stood at $74.17 billion at the end of the third quarter of the current fiscal year. Liabilities also stood at $31.67 billion. This means that both external debt and liabilities stand at the highest figure they have ever been.
Last year on March 31st these loans were $92.288 billion which showed that Pakistan piles up her external loans by $13.6 billion. Pakistan also has to return $1.273 billion.
The reason for the increase is that successive governments in Pakistan have massively borrowed from external as well as internal sources to meet the twin deficits including budget and current account. Moreover, governments also failed to boost exports, says analyst Imran Kundi.
Pakistan recently struck a $6 Billion deal with the International Monetary Fund (IMF), which would pave way for receiving loans from World Bank, Asian Development Bank, and others. All these loans would further increase the country’s debt and liabilities in the months to come.