Pak needs to pay $77.5 bn in debt; risk of default 'real': US think tank
Pakistan needs to repay a whopping USD 77.5 billion in external debt from April 2023 to June 2026 and the cash-strapped country may face "disruptive effects if it ultimately defaults, a prominent US think tank has warned.
The analysis published on Thursday by the United States Institute of Peace (USIP) warned that amid skyrocketing inflation, political conflicts, and rising terrorism, Pakistan is facing the risk of a default due to its massive external debt obligations, the Geo News reported on Friday.
Pakistan, currently tackling a major economic crisis, is grappling with high external debt, a weak local currency and dwindling foreign exchange reserves.
The USIP report called the USD 77.5 billion that Pakistan needs to repay in external debt from April 2023 to June 2026 a hefty amount for a USD 350 billion economy.
It stated that if Pakistan ultimately defaults, there will be a cascade of disruptive effects.
In the next three years, the debt-struck country has to make major ...