Debt skyrocketing but manageable: PEW

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ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said that the country’s total debt stocks that have jumped to over Rs26.5 trillion are at an all-time high, but are still in manageable limits.

“The government is facing larger economic challenges such as repaying mounting foreign debt amid rapidly declining foreign currency reserves necessitating vital reforms,” said PEW President Dr Murtaza Mughal.

“The debt burden has touched alarming proportions due to the relentless borrowing by the
former government, unabated imports, sliding exports and other factors but it will not bankrupt the country,” he added.

He said that foreign exchange reserves are under pressure while repayment of loans will eat up a large portion of government earnings which can be countered through good growth rate and enhanced exports.

He further added that the that current account deficit has touched worrying proportions while imports have added to the ballooning deficit.

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