Pakistan's external debt worth $27 billion will mature in two years: IMF

ISLAMABAD: The International Monetary Fund (IMF) has warned in its report that $27 billion worth of Pakistan’s external debt will mature within two years, ARY News reported on Tuesday.

The IMF in a new Regional Outlook Report Update on the Middle East, North Africa and Afghanistan disclosed the $27 billion external debt repayment figure.

“Many countries have large foreign currency debt – some $27 billion – set to mature in the next two years, leaving them more exposed to slower growth prospects and financial market volatility,” said the IMF report.

In a separate chart in the report, the $27 billion repayment figure has been shown against Pakistan, which is the highest repayment amount by any country in the region.

The economic outlook forecast tangible decrease in the growth rate of Pakistan and Afghanistan. It also predict minimal economic growth in Gulf countries.

The report said that the inflation in the region will sustain at above 11% level.

The IMF report said that Pakistan’s economic growth rate will remain 2.9 percent.

The depreciation of rupee and other factors will further fuel the inflation and price hike.

The maturing of $27 billion external debt within two years would have destabilizing impact on the economy. It also highlights the gravity of challenges faced by the government.

The IMF said that the tax recovery in the country has been on the downside.

Due to the loss-making state entities the resources not being used on optimum level, the report said recommending reorganization of the institutions to attain the financial stability.