What's new

Pakistan’s expected debt to be $110 billion by 2020

ok - but in this case none of the factors you mention are in place. We are not growing at a rate faster than debt, neither FDI not coming in...
Okey, if we are not then how Debt to GDP ratio is sustaining? If your argument holds true and numerator is increasing at a faster rate than denominator, the ratio should increase
pakistan-government-debt-to-gdp@3x.png
 
.
Okey, if we are not then how Debt to GDP ratio is sustaining? If your argument holds true and numerator is increasing at a faster rate than denominator, the ratio should increase
View attachment 382762
This article says about external debt.. So the sustainability basis of total govt debt aka debt to GDP ratio is not much applicable here..
The World Bank and IMF hold that "a country can be said to achieve external debt sustainability if it can meet its current and future external debt service obligations in full, without recourse to debt rescheduling or the accumulation of arrears and without compromising growth".
According to these two institutions, "bringing the net present value (NPV) of external public debt down to about 150 percent of a country's exports or 250 percent of a country's revenues" would help eliminating this "critical barrier to longer-term debt sustainability".
The other main things are the external debt structure & the external debt to forex reserve ratio etc.
 
.

Latest posts

Back
Top Bottom