On the one hand, Pakistan is stuck in economic crisis, and on the other hand, the leaders of Pakistan are deeply embroiled in infighting. Therefore, a situation is being created for the country to get trapped in a civil war.
Pakistan $77 Billion Debt: Pakistan’s Finance Minister Ishaq Dar, who is stuck in a severe economic crisis, has said a day ago that Pakistan is not a begging country, rather it is a member country of the IMF.
Ishaq Dar says that being a member of the IMF, Pakistan is asking for a bailout package from it, no one is begging.
Ishaq Dar is right, but Ishaq Dar forgot that the debt is also repaid and in the latest report it has been found that Pakistan has to repay the debt of $77.5 billion by the year 2026, that is, in the next 3 years.
That is, Pakistan, which has been begging for months in front of the IMF for a loan installment of $ 1.1 billion, and Pakistan, which has only around $ 3 billion left in foreign exchange reserves for the last several months, Pakistan’s Finance Minister Ishaq Dar , Showing his arrogance.
From where will Pakistan repay the loan?
Ishaq Dar may be talking nonsense, but Pakistan has to repay an external debt of USD 77.5 billion from April 2023 to June 2026. The American think tank has warned that it is impossible for Pakistan to repay this loan, so bankruptcy is certain for Pakistan.
Amidst skyrocketing inflation, political strife and rising terrorism, Pakistan is facing a huge crisis due to its massive external debt obligations, warned Geo News on Friday, in an analysis published on Thursday by the United States Institute of Peace (USIP). facing the risk of default.
Pakistan is currently facing a major economic crisis, and the import of foreign goods into Pakistan was banned almost a year ago, that’s why Pakistan has $3 billion left over from last 6 months.
The USIP report states that from April 2023 to June 2026, Pakistan needs to repay an external debt of $77.5 billion, and for Pakistan whose total economy is only $350 billion, it is impossible to repay this debt.
The report said that Pakistan would eventually have to default and Pakistan would suffer “disruptive effects”.
Debt-ridden Pakistan has to make huge payments to Chinese financial institutions, private creditors and Saudi Arabia in the next three years.
It has been said in the report that by the month of June this year, a loan of $ 4.5 billion has to be repaid in front of Pakistan and from where Pakistan arranges this much money, it will be a matter to be seen. Of this, $1.4 billion is China’s safe deposit, which was kept in the State Bank of Pakistan, and $1 billion is a loan from the Chinese commercial loan, which was taken by the Government of Pakistan.
What is Pakistan thinking?
Pakistan’s officials and the government of Pakistan are in the hope that they will convince China about not paying the money in June. China has done this many times in the past as well, so it is very possible that China will be ready not to take money in June. But, the think tank said, doing so would not solve its crisis for Pakistan, but would only prolong it for a few months.
The think tank has said that even if Pakistan convinces all its friendly countries not to pay the debt this year, the trouble will not subside for Pakistan. Because, in such a situation, Pakistan will have to repay the debt of $ 25 billion by the next financial year. And the think tank says, from where will Pakistan deposit this amount in a year?
Pakistan is waiting for USD 1.1 billion funds from the International Monetary Fund, but, the IMF is not getting ready to give even a single penny to Pakistan.
Talks on the $6.5 billion bailout package program were finalized between Pakistan and the IMF in the year 2019 and experts say that Pakistan will get some relief from the crisis only when it gets a loan from the IMF.
Out of this $6.5 billion, Pakistan is seeking an installment of $1.1 billion from the IMF. But, the Pakistan government has violated the terms of the IMF so many times, that it has lost faith in Pakistan.
The agreement between Pakistan and the IMF in 2019, that program will end on 30 June 2023 and this limit cannot be extended further. So, it is now certain that Pakistan is left with no option but to go bankrupt.