The remaining debt of Pakistan is about 10 billion dollars

Pakistan is a developing country located in South Asia, bordered by India to the east, Afghanistan and Iran to the west, and China to the north. Despite its rich history and cultural heritage, Pakistan has struggled with poverty, political instability, and debt throughout its existence. In recent years, the country has faced particularly severe economic challenges, with its debt burden reaching unsustainable levels.

According to the World Bank, Pakistan's total external debt was approximately $96.1 billion as of December 2020. Of this, about $10 billion is owed to external creditors, including international organizations such as the International Monetary Fund (IMF) and individual countries such as China. The remaining debt is owed to domestic creditors, including commercial banks, financial institutions, and the government itself.

Pakistan's heavy debt burden is a result of a number of factors. One major factor is the country's large trade deficit, which has been exacerbated by rising import costs and declining exports. Pakistan has also had to rely heavily on borrowing to finance its budget deficit, which has been exacerbated by slow economic growth, low tax revenues, and high government spending. In addition, the country has faced a number of natural disasters and conflicts, which have put additional strain on its finances.

The government of Pakistan has taken a number of steps in recent years to address its debt problem. In 2019, the government reached a deal with the IMF for a $6 billion loan to help stabilize the country's economy and reduce its debt burden. As part of this deal, the government committed to implementing a series of economic reforms, including reducing its budget deficit, increasing tax revenues, and liberalizing its trade regime.

Despite these efforts, Pakistan's debt situation remains precarious. The country's economic growth has been slow, and it continues to face a number of challenges, including a high population growth rate, low levels of human development, and a fragile security situation. In addition, Pakistan's external debt is expected to continue rising in the coming years, due in part to the country's reliance on borrowing to finance its budget deficit.

There are a number of potential consequences of Pakistan's high debt burden. One potential consequence is that the country may be unable to service its debt, which could lead to default and a potential financial crisis. This could have serious implications for the country's economy and its people, as it could lead to capital flight, a decline in the value of the Pakistani rupee, and a reduction in access to credit.

Another potential consequence of Pakistan's high debt burden is that it may be unable to invest in key areas such as infrastructure, education, and health care. This could have long-term negative effects on the country's economic development and the well-being of its people. In addition, Pakistan's high debt burden may limit the government's ability to respond to crises or emergencies, as it may be required to prioritize debt repayment over other expenditures.

There are a number of ways in which Pakistan could address its debt problem. One potential solution is for the government to implement further economic reforms to improve the country's fiscal position and reduce its reliance on borrowing. This could include measures such as reducing government spending, increasing tax revenues, and promoting economic growth.

Another potential solution is for Pakistan to negotiate debt restructuring or forgiveness with its creditors. This could involve extending the maturity of its debt, reducing the interest rate, or negotiating a partial or complete write-off of the debt. Such negotiations could be challenging, as they would require the support of Pakistan's creditors and could have implications for the country's creditworthiness and access to financial markets.