Economics
IMF Bailout Looms For Pakistan as Debt Surge Raises Alarm
- Nation’s financing needs is the highest in emerging markets
- At least $9.5b foreign debt to be raised in next fiscal year
Photographer: Asim Hafeez/Bloomberg
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For many in Pakistan it’s a question of when -- rather than if -- the nation will go to the International Monetary Fund for financial support to pay its soaring foreign debt as reserves dwindle.
External debt and liabilities has increased 76 percent to 10.6 trillion rupees ($92 billion) since June 2013, taking the ratio up to 31 percent of gross domestic product, the highest in almost six years. Pakistan’s debt will continue to grow as it has the highest financing need as a percentage of GDP in emerging markets over the next two years, according to IMF projections.