The Right Medicine for Pakistan’s Ailing Economy
To address Pakistan’s debt crisis, some experts are calling for a default and restructuring, while others are urging strict adherence to the austerity program agreed with the International Monetary Fund – neither of which will work. But there is a third, more effective, way to halt the country’s debt spiral.
https://prosyn.org/55K1MnS
KARACHI – Pakistan’s long history of fiscal mismanagement has saddled the country with a crushing debt burden. Interest payments on the public debt consume a staggering 60% of government revenue. And external-debt repayments coming due over the next five years amount to nearly $70 billion, dwarfing the $11 billion in foreign-exchange reserves held by the central bank.