Pakistan’s External Debt Surges to $135 Billion in a Decade, Reports World Bank

ISLAMABAD: Pakistan’s external debt has nearly doubled over the past decade, rising from $68.7 billion to $135 billion, according to a recent report by the World Bank. This alarming increase highlights the growing financial challenges facing the nation as it grapples with economic instability.

The World Bank’s findings underscore the urgent need for comprehensive economic reforms. Officials have expressed concerns about the sustainability of this debt trajectory, with Finance Minister Ishaq Dar stating, “We must address our fiscal policies to ensure long-term economic stability and growth.” The report also indicates that the rising debt levels could hinder Pakistan’s ability to invest in critical infrastructure and social services.

This surge in external debt poses significant implications for the Pakistani economy and its citizens. As the government allocates more resources to debt servicing, essential public services such as education and healthcare may suffer. Moreover, the increasing debt burden could lead to higher inflation rates, further straining household budgets and diminishing purchasing power.

In light of these developments, the government is expected to convene a series of meetings with economic advisors and international financial institutions to devise a strategic plan aimed at stabilizing the economy. Analysts suggest that immediate action is crucial to prevent a potential debt crisis that could have far-reaching consequences for the nation.