Islamabad: Pakistan has to repay the foreign debt of $ 77.5 billion between April 2023 and June 2026. The cash-strapped country is therefore at a real risk of bankruptcy and may face disruptive effects.
The United States Institute of Peace (USIP), a leading US-based research institute, warned in an analysis published on Thursday. Pakistan is facing the risk of bankruptcy due to massive foreign debt liabilities amid skyrocketing inflation, political strife, and rising terrorism, Geo News reported on Thursday, citing USIP.
Pakistan is currently grappling with high external debt, weak local currency, and dwindling foreign exchange reserves. USIP said in its report that from April 2023 to June 2026, Pakistan has to repay the 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 over the next three years.
