Pakistan's Soaring Foreign Loans: A Double-Edged Sword

Pakistan amassed a record $26.7 billion in foreign loans last fiscal year, highlighting growing reliance on foreign creditors. Nearly half of these loans were rollovers, with only $3.4 billion dedicated to project financing. The burgeoning debt and high-interest rates raise concerns over the nation's economic vulnerability.

Last fiscal year, Pakistan piled up a staggering $26.7 billion in foreign loans, setting a new record and illustrating the country's increasing dependence on international credit, reported The Express Tribune newspaper.

This influx of capital was largely from loan rollovers, with just a mere $3.4 billion directed towards project financing, based on data from the Ministry of Economic Affairs and the State Bank of Pakistan.

The nation's escalating debt highlighted significant vulnerabilities in its economic stability, primarily due to high-interest loans, limited project financing, and restricted access to the global capital markets.