Pakistan, A country that runs on loans & just loans…
In July last month, Pakistan secured yet another bailout package of $6 billion from IMF making its 13th bailout package since the 1980s.
Currently, Pakistan owes the world $85.5 billion and China is its single largest lender, contributing nearly 18% of the total foreign loans it has taken. Saudi Arabia, Japan, the UAE, and France are among other major lenders. While the country has little over $7 billion as its foreign reserves which are not enough to fund the countries requirements.
Pakistan is in default like a situation as the country is unable to earn the dollars which are very important to maintain its foreign reserve. The country is spending $2 to earn every single dollar because of its fallen exports.
In order to control this current situation, Pakistan further is looking for more loans as aid packages from countries like China, Saudi Arabia, the UAE, and Qatar.
Moreover, Pakistan is also in the grey list of FATF which means there is going to be more trouble for Pakistan in the coming days. As Pakistan is unable to control its terror funding activities and other related issues, the day is not far that Pakistan will be in FATF’s blacklist and a complete bankrupt nation.