Analysis Highlights Risks as Pakistan's Public Debt Surpasses Rs100 Trillion

Managing external debt

PAKISTAN’S debt has crossed Rs100 trillion raising doubts about the stabilisation programme’s veracity. First, it’s not advisable to use absolute amounts or per capita debt. The correct way is to use indicators that relate public debt stock and debt servicing to national income, exports of goods and services, revenues, total foreign exchange earnings and foreign exchange reserves to gauge the future capacity to discharge these obligations. To begin with, clarify the various definitions that h...

By [email protected] (Ishrat Husain)