Pakistan Crisis: The threat of 'defaulter' on Pakistan! US think tank warned – difficult to repay debt

The IMF programme, signed in 2019, will expire on June 30, 2023, and cannot be extended beyond the deadline, according to the guidelines.

Pakistan is currently fighting a serious economic crisis, but all efforts to win seem to have failed. According to the World Bank, about 40 lakh people of Pakistan are in the grip of poverty. The currency reserves in the central bank here have reduced to less than two billion US dollars . The situation is that people are ready to die for everyday things. Sometimes people are seen running behind vehicles for flour and sometimes they are seen standing in long queues.

At the same time, an American think tank has given a big warning about Pakistan. He believes that Pakistan will have to repay the debt of US $ 77.5 billion from April 2023 to June 2026 i.e. for three years.

Pakistan can be defaulter

According to the information, the United States Institute of Peace (USIP) has published a report regarding the current situation in Pakistan. In this report, it has been said that due to default in foreign debt obligations amidst inflation, political infighting and terrorism, Pakistan may become a defaulter.

Pakistan facing economic crisis

The USIP report states that Pakistan is currently facing a major economic crisis, grappling with high foreign debt, weak local currency and depleting foreign exchange reserves. The USIP report states that from April 2023 to June 2026, Pakistan needs to repay an external debt of $77.5 billion, which is a huge amount for an economy of $350 billion.

The challenge will increase in the next financial year

In the next three years, the debt-ridden country has to make huge payments to Chinese financial institutions, private creditors and Saudi Arabia. The report pointed out that from April to June 2023, Pakistan is facing near-term debt servicing pressure as the external debt service burden is USD 4.5 billion. It has been said in the report that even if Pakistan completes this, then there will be more challenge in the next financial year, because the debt will increase to about $ 25 billion. Please tell that Pakistan is waiting to get 1.1 billion US dollars from the International Monetary Fund (IMF).

Part of the US dollar bailout package

These funds are part of the USD 6.5 billion bailout package approved by the IMF in 2019. On the other hand, if Pakistan has to meet its external debt obligations then it is important. The IMF programme, signed in 2019, will expire on June 30, 2023, and cannot be extended beyond the deadline, according to the guidelines.

Talks between pakistan and imf

Actually Pakistan and IMF have been negotiating for several months, but have not reached any agreement yet. At present, there is no easy solution in sight to fix the deteriorating economy of Pakistan. At the same time, the government believes that they have taken all the tough decisions to revive the IMF program.