Debt rescheduling challenge
The country is going through a very difficult balance of payment (BoP) situation. The core of the problem is growing external public debt and its repayment. A reduction in current…
Pakistan in deep debt trap
Pakistan’s precarious financial situation, persisting for the last many decades, has landed it into a deep debt trap where an overwhelming part of tax revenue is consumed in debt servicing…
Floods, debt, and SDRs
Pakistan is facing unprecedented floods of a profoundly catastrophic nature. While 3 million livestock have died in the flood-hit areas, the other mainstay of peoples’ livelihood in the shape of…
Floods, food & debt crises, and 77th UNGA session
The United Nations General Assembly’s (UNGA’s) 77th Session from September 13-27 comes at a very crucial time for Pakistan, as the country suffers from unprecedented floods, while it was already…
Domestic foreign policy issues
A country’s leadership is supposed to serve its economic and security interests, advance people’s wellbeing, and respond to their aspirations for progress. These objectives are achieved with a combination of…
Soaring public debt
The latest estimate of the stock of public debt of Pakistan by the SBP (State Bank of Pakistan) as of end-March 2022 is a staggering Rs 44.4 trillion. In effect,…
How to solve the debt crisis
A previous article (Real clear economics, BR, 24 Mar 2022) pointed out that governments of Pakistan have borrowed far more than the people, as ultimate borrowers, can feasibly repay. This…
The rising public debt burden
The public debt of Pakistan consists of the domestic and external debt of the government plus debt owed to the IMF (International Monetary Fund). Table 1 below shows that it…
For some European states, rising debt costs rekindle 2011 crisis memories
The rise in European bond yields is alarming some economists, who warn that Italy and Greece in particular do not have much wiggle room before their debt servicing burden starts…
Crisis of inflation, debt, and weak SDR allocation response
‘We’ve entered an era where supply constraints are the driving force of inflation rather than excess demand. This will likely bring more macro volatility and force policymakers to live with…
