World Economy

Pakistan in Midst of Economic Crunch

Pakistan in Midst of Economic CrunchPakistan in Midst of Economic Crunch

The Pakistan People’s Party launched an attack on the government’s economic track record, saying the country is in the midst of an ‘economic crunch’, APP reported. “Amid reports of falling exports, remittances and foreign direct investment, the news of ballooning external and domestic debt and parochialization of national institutions like the State Bank of Pakistan, has unleashed a wave of concern among key economic stakeholders in Pakistan,” PPP vice president Senator Sherry Rehman said in a statement issued on Friday. The PPP’s vice president said the current government had already taken massive loans from the International Monetary Fund and now it had added more debt to its stockpile by floating $1 billion bonds in the international debt market.  “According to recent estimates from the SBP, Pakistan would be paying around $5 billion each year in foreign debt servicing until 2021.” She said this borrowing was taking place at a time when the country’s external accounts were already under extreme pressure and there was fresh uncertainty about the future of low oil prices. “How will we repay all these debts?” she questioned.



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