Monday, June 16, 2025

Pakistan’s Debt Crisis-A Growing Burden as the Second-Largest Borrower After India

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Pakistan is in a Debt Crisis after India. Pakistan’s external Debt continues to surge, raising alarms over the nation’s economic stability. With its external debt now exceeding $130 billion, Pakistan ranks second in the region, just behind India, for paying hefty interest on loans.

A recent World Bank report has revealed a concerning statistic: Pakistan’s external debt is a staggering 352% higher than the country’s average annual exports. This substantial gap highlights the growing financial strain on the country.

In the past year alone, Pakistan’s debt has increased by $3 billion, pushing the country to become the second-largest borrower from the World Bank, only behind China. The continuous rise in debt is putting immense pressure on Pakistan’s economic outlook and fueling fears of a long-term financial crisis.

As the nation struggles with its ballooning debt, experts are warning of the potential consequences if immediate measures are not taken to address the situation. With a rising debt burden, Pakistan faces mounting challenges in ensuring its economic stability and growth in the years to come.

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