Pakistan's public debt has been doubling every 5 years

[Suriya]

Pakistan's public debt has been doubling every 5 years i.e. approx 15% per annum; but growth has been anemic i.e. around 3% per annum. The result: Bankruptcy.

 

[Skull and Bones]

They will not get bankrupt outright, as many foreign powers have vested interests. But the poor and middle class will squeal.

 

[FuturePAF]

The rupee has been devalued from Rs. 60/dollar to nearly 300, but the large point is clear.

 

[Clutch]

The rupee has been devalued from Rs. 60/dollar to nearly 300, but the large point is clear.

The Pak rupee is still overvalued at 300.... It should be really at 3000. In the failed banana republic of Pakistan things are a lot worse than most realize.

 

[FuturePAF]

The Pak rupee is still overvalued at 300.... It should be really at 3000. In the failed banana republic of Pakistan things are a lot worse than most realize.

Seems like they burst the entire ponzi scheme when they removed IK. He was at least trying to balance the economy as much as possible, but the rot had been building for decades.

Now everyone is questioning everything, and confidence in the Pakistani economy is being challenged from all fronts.

I doubt it would go to 3000, but the worst seems like it’s yet to come.

 

[epebble]

Pakistan's public debt has been doubling every 5 years i.e. approx 15% per annum; but growth has been anemic i.e. around 3% per annum. The result: Bankruptcy.

There is no bankruptcy in the rupee world. Since, Pakistan's Central Bank (SBP) is not independent but an arm of the government, the money supply will expand to fill available need. This causes inflation as increasing amount of money bids up limited quantity of goods and services. Default will occur on external front where depreciating rupees can't be used to buy up enough foreign exchange.

 

[HAIDER]

They will not get bankrupt outright, as many foreign powers have vested interests. But the poor and middle class will squeal.

Country is bankrupt, but people have Lexus SUVs and top brands cars in their porches......but poor .................

 

[maithil]

Interest payments increasing every year will result in more deficit and even more debt. Vicious cycle with no other way to come out but heavily tax the rich.

 

[Rollno21]

I am excited for 2025