Pakistan may go bankrupt, will have to pay foreign debt of $ 77.5 billion

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Pakistan: Pakistan has to repay foreign debt of $ 77.5 billion between April 2023 and June 2026. In such a situation, the country facing cash crunch is in real danger of bankruptcy and may have to face disruptive effects. The United States Institute of Peace (USIP), a leading US-based research institute, warned in an analysis published yesterday.

grappling with a weak local currency and dwindling foreign exchange reserves

Geo News quoted USIP as saying that amid skyrocketing inflation, political strife and rising terrorism, Pakistan is facing the risk of bankruptcy due to massive foreign loan liabilities. Pakistan is currently grappling with high foreign debt, weak local currency and dwindling foreign exchange reserves.

Pakistan pays big to private lenders and Saudi Arabia

USIP said in its report that from April 2023 to June 2026, Pakistan has to repay foreign debt of $ 77.5 billion, which is a huge amount for an economy of $ 350 billion. The report said that if Pakistan defaults on this liability, it will have to face disruptive effects. Pakistan has to make huge payments to Chinese financial institutions, private lenders and Saudi Arabia in the next three years.

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