Cash Trapped Pakistan..!? Repay of huge debts..!?

The government of pakistan, which is in dire financial straits, has been forced to repay US$ 100 billion in debt over the next four years. This has caused more headaches for the government of that country. The current foreign exchange reserves of the government of pakistan are 9.4 billion US dollars, but the debt that the country has to repay in the next four years is 10 times this amount. In this regard, in a news published by a newspaper from pakistan, it has been reported that the government of pakistan should pay back the debt of 100 billion US dollars that it bought in publications between 2024 and 2027.
Ali Malik, the Joint minister of Finance of the country, who spoke to the Standing Committee of the pakistan Parliament, also released this information. However, he also said that the government is planning to take new loans to settle these old debts. Stating that the government has no plan to repay these loans in the current environment, Malik has said that negotiations are underway with the lending institutions to postpone the loan repayment period. In this context, it seems that the Board of the international Monetary Fund is planning to approve a 37-month extended financial facility program worth 7 billion US dollars to pakistan on the 25th. However, the government of pakistan has stated that this 7 million dollar financial assistance will not be enough. For the past few years, the government of pakistan has been facing a severe economic crisis. This economic crisis also led to the overthrow of Imran Khan's regime in the country. In this context, the government of pakistan is coping with the economic crisis by taking loans from allied countries and international financial institutions. Millions of Pakistanis have been pushed below the poverty line due to the economic crisis. Also, the prices of essential commodities are rising and the youth of pakistan are suffering from a lack of employment opportunities.

It is in this situation that the government of pakistan is taking loans from organizations such as the World bank and the international Monetary Fund and from friendly countries. However, the government of pakistan is facing a huge financial problem as the debt repayment period is approaching. Apart from international financial institutions, pakistan has been extended credit by Saudi Arabia, China, the United Arab Emirates, and Kuwait.
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Sowmiya Sriram

23/09/2024 02:29 PM