Pakistan will need $120 billion in gross external debt over the next five years, which is 126 to 274 percent more than Pakistan’s foreign exchange reserves, thus the country will face a crisis like default.
According to the report published in Jang, Pakistan Institute of Development Economics Reform Urgent Reform Agenda Report states that Pakistan needs to correct the system to ensure prosperity and economic development.
According to the report, Pakistan will get 22 billion 80 billion dollars in the current financial year, 24 billion 90 billion dollars in the next financial year, 22 billion 20 billion dollars in the financial year 2025-26, 24 billion 60 billion dollars in the financial year 2026-27 and 24 billion 60 billion dollars in the financial year 2027- In 28, 24 billion 90 billion dollars will be needed for foreign loans, Pakistan will need 120 billion dollars for the next five years, which is more than 126 percent to 274 percent of Pakistan’s foreign exchange reserves.
The report states that the need for external financing from Pakistan’s foreign exchange reserves in the next 5 years is very high.
506.70% for the current financial year, 273.60% for the next financial year, 170.80% for the financial year 2025-26, 145.60% for the financial year 2026-27, and 126.40% for the foreign exchange reserves in the financial year 2027-28.
Pakistan’s foreign exchange reserves are insufficient and challenges are compounded by inflation, while the rate of investment is very low relative to GDP.
PAID Vice Chancellor Dr. Nadeemul Haq has emphasized a comprehensive approach to tackle Pakistan’s economic challenges. Improvement and improvement agenda has been given in the banking sector.
