According to recent reports, Pakistan’s external debt servicing has witnessed a significant increase of 70% during the first half of the fiscal year 2022-23.
This comes as a major concern for the country as it continues to face economic challenges due to the COVID-19 pandemic.
The surge in debt servicing is mainly attributed to the increasing burden of interest payments and the depreciation of the Pakistani rupee against the US dollar. Experts have warned that if the situation persists, it could lead to a further deterioration of the country’s economic situation, including a decline in foreign reserves and a possible devaluation of the currency. This highlights the need for the Pakistani government to take urgent measures to address the issue and improve the country’s financial stability.