TFIGlobal
TFIGlobal
TFIPOST English
TFIPOST हिन्दी
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
No Result
View All Result
TFIGlobal
TFIGlobal
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

Bankrupt Pakistan needs $25 billion a year to repay debt, IMF bailout is not enough

Amit Agrahari by Amit Agrahari
March 28, 2019
in Geopolitics, Indian Subcontinent
Bankrupt Pakistan needs $25 billion a year to repay debt, IMF bailout is not enough
Share on FacebookShare on X

The economic condition of Pakistan has not been good in the last few months. The prime minister of the country is touring around the world with a begging bowl to repay the debts. Three friendly countries – China, UAE and Saudi Arabia has contributed 2.5, 1, and 1 billion dollars respectively to help the debt-ridden country. However the debt of Pakistan is so high that it will need 50 billion dollars in the next two years to escape from any default on payments obligations, said Shahid Kardar, former governor of the central bank.

The external debt and liabilities is around 100 billion dollars. The external debt to GDP ratio of Pakistan is 36 percent against 20 percent of India. Pakistan has only few friends left in the international arena to help the country. China, the all-weather ally has become bailout god for Pakistan, it has given 4.2 billion dollars since July last year. However, the money coming from China is not enough to pull the country out of debt and the country is seeking expensive commercial loans. The global lending institutions like World Bank, Asian Development Bank and IMF have been apprehensive to bail out Pakistan.

Also Read

Narco-Terror Nexus Spanning China, Canada and Pakistan Discovered by US-DEA

Balochistan’s Endless Ordeal: The Tragic Story of Zeeshan Zaheer and the Shadow of Enforced Disappearances

Microsoft exits Pakistan: Will China Step in?

The economic growth of Pakistan in the current fiscal year (ending on July 2019) is expected to be seven-year low somewhere around 3 percent. The yearlong inflation is estimated between 6 to 7 percent. The inflation in the country is rising faster than GDP growth which means per capita income of people in the current fiscal year is expected to fall. The heavy borrowing from the central bank, exuberant currency printing and war tensions are reasons behind the rise in inflation rate.

The GDP growth in the country is led by consumption with its share in the economy rising from 91.8 percent in FY14 to 94.5 percent in FY18. The share of investment in the economy of Pakistan is very low which means that the economy will not be on the good growth trajectory in the upcoming years. The tax to GDP ratio fell below 13 percent despite the government’s effort to crack down on corruption.

The fiscal deficit of the country is around 2300 billion Pakistani rupees or 6.6 percent of GDP. The currency of Pakistan has shed a quarter of its value and exports did not increase even after this. The Current Account Deficit (CAD) of Pakistan was just 2.5 billion in 2018 and increased to 19 billion dollars in 2018. The Pakistani government has debt obligations worth 9 billion dollars in short term and if the IMF refuses to bail out the debt-ridden government, the country would be declared bankrupt. Pakistan is seeking an 8 billion dollar bailout package from IMF to repay its debt obligations.

For years the country has used its strategic geopolitical location to get money from the United States. Pakistan has become a pawn in the hands of the US in its proxy war with USSR. For years, the US pumped billions of dollars in Pakistan as financial and military aid. In the post-cold war world, it allied with China due to their mutual fear of India. But as economic clout of China grew over the years, the relationship of equals became like that of a colonial subject and master.

Tags: Pakistan
Share312TweetSend
Amit Agrahari

Amit Agrahari

Engineering grad but Humanities and social sciences are my forte. Avid reader of religious Scriptures (Especially Hindu), Lord Shiva devotee

Also Read

"Ukraine’s Drone War Against Russia: Are Kill Points Crossing the Line?

Kill Russian Soldiers, Win Gear: Inside Ukraine’s Controversial “Gamifying War” Drone Program

July 18, 2025
US begins deploying squadrons of fighter jets to Japan, readies for Taiwan clash with China

US begins deploying squadrons of fighter jets to Japan, readies for Taiwan clash with China

July 18, 2025
Russia warns, “Ukraine setting up a chemical disaster near troops to blame Moscow and Putin”

Russia warns, “Ukraine setting up a chemical disaster near troops to blame Moscow and Putin”

July 18, 2025
Laos Joins Russia’s War Logistics in Ukraine, Sparking U.S. and NATO Concern

Axis of Alignment? After North Korea, Laos Send Troops to Support Russia in Ukraine War

July 18, 2025
North Korean Tactics on Ukraine’s Battlefield: Russia’s Reinforcements Against the U.S.

Russia’s Use of North Korean Forces in Ukraine: What the US Must Know?

July 18, 2025
Why is Israel bombing Syria for Druze community?

Who is the Druze community?: Israel Bombing Syria For Them

July 17, 2025
Youtube Twitter Facebook
TFIGlobalTFIGlobal
Right Arm. Round the World. FAST.
  • About Us
  • Contact Us
  • TFIPOST – English
  • TFIPOST हिन्दी
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy

©2025 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIPOST English
TFIPOST हिन्दी

©2025 - TFI MEDIA PRIVATE LIMITED

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.