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Problem in repaying debt

Problem in repaying debt

Pakistan owes the rest of the world roughly $100 billion, and during the current fiscal year, it must repay $21 billion to international lenders. And over the following three years, it will have to return roughly $70 billion in similar or higher annual amounts.

What will occur in four years? Will we still owe only $10 billion after repaying our creditors roughly $90 billion? Regrettably, no. We lack the means to pay back our lenders. All we can do is try to borrow money from one creditor to repay another.

As a result, we will have to pay back the globe more than the $21 billion we must this year, plus a little more each year after that, in four years. Consequently, Pakistan will continue to accumulate debt. Let’s take a look at where we came from in order to understand where we are now. A large portion of our debt to the West was written off when Pakistan joined the fight against Al Qaeda and the Afghan Taliban who protected them. As a result, we had far lower debt payments to make, and our need for foreign currency decreased.

Mifta Ismail Former Finance Minister Said:

“Four years from now, we will have to repay the world more than $21bn we have to pay this year”