Neighboring country Pakistan may be bankrupt in the current financial year. If Pakistan does not repay a loan of Rs 6.50 lakh crore i.e. 23 billion dollars in the current financial year, it is possible to happen. The News, citing Pakistan's Economic Survey 2024-25, has informed that the government will have to pay a loan of $ 23 billion during 2025-26, and if not done so, the country can reach the verge of default.
By the end of March 2025, the total public date of the country was 76.01 trillion rupees. This includes 51.52 trillion rupees domestic lending (about 180 billion $ 180 billion) and 24.49 trillion rupees (about 87.4 billion) external loans. The outer loan is divided into two parts of money borrowed by the government and money received from the IMF. This debt has increased due to years of Economic Missmange, temporary funding and frequent bailouts. But this year's repayment demand has revealed how little scope has been left with the government.
Temporary Deposit of $ 12 billion
In the current year, Pakistan is to pay $ 23 billion. For which $ 12 billion will be received from four so -called friendly countries as Temporary Deposit Mount. It will get 5 billion dollars from Saudi Arabia, $ 4 billion from China, $ 2 billion from the United Arab Emirates and $ 1 billion from Qatar.
This amount is not permanent and is useful only when it is carried forward. If any of these countries decide to get out of it, then Pakistan will have to return it completely this year. The News has warned that if the friendly countries refuse to give a rollover on their deposits, then the situation may worsen.
With which it will be mandatory for the government to pay. Due to this, the government does not depend on financial strength, but on the diplomatic goodwill. And there are indications that goodwill is also getting weaker.
Payment of $ 11 billion is still left
According to the PTI report, even if all the temporary deposits are increased, Pakistan will still have to pay about $ 11 billion to external creditors this year. This includes $ 1.7 billion international bonds, commercial loans of $ 2.3 billion, World Bank, Asian Development Bank, Islamic Development Bank and Asian Infra Investment Bank etc. for $ 2.8 billion and bilateral loans of $ 1.8 billion. This pressure has come at a time when Pakistan's foreign exchange reserves are already under pressure. The country has limited sources of new income and is still waiting for a new expanded program from the IMF.
Half of debt share in budget
Pakistan has set 8.2 trillion rupees to repay domestic and foreign debt in its 2025-26 budget. This figure is 46.7 percent of the total federal budget of Rs 17.573 trillion rupees. In simple words, Islamabad is planning to spend the amount of money that is planning to spend this year, to repay the old debts. Now there is less money left for development, public services or basic maintenance of existing infrastructure. Education, health and social welfare are left behind, while interest payments are the main part of national expenditure.
Military expenses are increasing even after fiscal pressure
Surprisingly, Pakistan's defense spending has not reduced even after the financial condition has deteriorated. Demanding bailout and rollover, the government is carrying forward the deals of big arms. Pakistan has finalized a strategic partnership with Türkiye, including a $ 900 million drone deal and more than 700 loitoring weapons. This partnership also includes sharing intelligence information and comprehensive security cooperation.
Military sources quoted in the reports have described this alliance as "jihad against India". The agreement also includes an ambitious trading targets of $ 5 billion. In addition, Pakistan is allegedly buying 40 J-35A stealth fighter aircraft from China, which are allegedly at concessional rates.
