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External debts of Pakistan to pile $90b soon

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Business Desk Islamabad: The external debt of the country is projected to mount to gigantic $90 billion in the next four years and Pakistan will require $20 billion per year merely to meet its external financing needs with the reservations that all constitutional preparations put in place to manage debt are getting in valid and fruitless.

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The well-known economist and the country’s former finance minister Dr Hafiz Pasha estimated the external debt figure, saying the current burden is approximately $14 billion higher than the projected made by the International Monetary Fund (IMF).

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In the light of Pasha’s projections, which are based on official date, the $14 billion gap was largely on account of foreign debts that will be utilized to support China-Pakistan Economic Corridor (CPEC) projects; however, government did not include the CPEC loans in total public debt.

“At the moment, we do not have details about the loans that will be taken under the CPEC,” said Ehtesham Rashid, Director General of the Debt Office at the Ministry of Finance.

Responding to these projections, Rashid said that when the details are available, the office may have to re-do the total management strategy.

Pasha also added saying the CPEC has great support from within the country; however, this revolutionary corridor has financial implications for Pakistan that have to be taken into consideration for better management of loans.

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