IMF Flags Concerns Over Pakistan’s Debt Repayment Outlook
International Monetary Fund has expressed concerns over the ability of Pakistan to comfortably meet its loan repayment obligations in the upcoming fiscal year, citing continued pressure from high public debt levels.
According to IMF projections, Pakistan’s debt-to-GDP ratio is expected to remain above 67% next fiscal year, which is significantly higher than the 60% threshold outlined under fiscal guidelines.
The country’s total debt has already reached approximately 72.8% of GDP, limiting fiscal flexibility and increasing vulnerability to external economic shocks.
Heavy Reliance on External Support
The IMF noted that Pakistan’s debt repayment capacity continues to depend heavily on external financial assistance and ongoing structural reform measures.
The report also highlights that without stronger fiscal discipline and sustained reforms, repayment pressures could increase further in the coming years.
Analysts say that improving revenue collection, reducing fiscal deficits, and stabilizing macroeconomic indicators will be key to managing long-term debt sustainability.
