how in the world can Pakistan plug a 40 billion dollar hole in its finances every year,
As far as the principal amount of loan is concerned, we can safely assume that it will never be repaid. So essentially we are down to how much CAD Pakistan will be allowed. I think we can safely say that it will be no more than 2%
of GDP (around USD 7 billion???)- the gap can be met by some FDI and some contribution from the taller than mountain friend, or brotherly countries from the Gulf.
Essentially Pak will have to restrict its import in such a way that the deficit doesnt cross that figures. Cut the coat according to the cloth. In growth terms, it might mean 2-3 years of the "Hindu" rate of growth.