KARACHI: Pakistan’s accumulated debt stock rose by 7.6 percent to $108.53 billion in 2020 from $100.83 billion a year before that, said a study conducted by the World Bank on Monday.
The global lending agency said its report, International Debt Statistics 2022, showed the debt vulnerabilities of low-income countries had significantly increased as a result of the COVID-19 pandemic.
Pakistan was among the top 10 countries that became eligible for debt relief under the Debt Services Suspension Initiatives announced by the G20 creditors after the emergence of the pandemic.
Data presented in a tabulated form in the report showed the overall rise in the country’s debt last year.
“Net inflows from other private creditors rose 15 percent in 2020 to $14 billion but were highly concentrated and also reflected rollovers and extension of new credits by commercial bank loans to Pakistan in the context of the IMF program,” the report added.
Pakistan’s debt stock was $63.09 billion in 2010 which rose to $93.5 billion by 2018, up by 48 percent while stock of debts rose by 16 percent between 2018 and 2020, according to the figures quoted in the World Bank report.
The external debt stock of low- and middle-income countries in 2020 rose, on average, by 5.6 percent to $8.7 trillion.
However, for many countries the increase was in double digits.
The external debt stock of countries eligible for the G-20 debt service initiative rose on average by 12 percent to $860 billion. In certain cases, the increase was even recorded at 20 percent or more.
For most countries, the rise in external indebtedness was not matched by the growth of gross national income (GNI) and exports, the report informed.
The external debt-to-GNI ratio of low- and middle-income countries’ rose to 42 percent in 2020 from 37 percent in 2019 while their debt-to-export ratio increased to 154 percent in 2020 from 126 percent in 2019.
Governments around the world responded to the COVID-19 pandemic with massive fiscal, monetary, and financial stimulus packages.
“While these measures were aimed at addressing the health emergency, cushioning the impact of the pandemic on the poor and vulnerable and putting countries on a path to recovery, the resulting debt burden of the world’s low-income countries rose 12 percent to a record $860 billion in 2020,” said a World Bank statement.
Even before the pandemic, many low- and middle-income countries were in a vulnerable position, undergoing a slowdown of economic growth and public and external debt at elevated levels.
Taken together, external debt stocks of low- and middle-income countries rose by 5.3 percent in 2020 to $8.7 trillion.
“We need a comprehensive approach to the debt problem, including debt reduction, swifter restructuring and improved transparency,” said David Malpass, the president of the World Bank Group in a statement, adding: “Sustainable debt levels are vital for economic recovery and poverty reduction.”
Overall, in 2020, net inflows from multilateral creditors to low- and middle-income countries rose to $117 billion, the highest level in a decade.
Net debt inflows of external public debt to low-income countries rose by 25 percent to $71 billion, also the highest level in a decade.
Multilateral creditors, including the International Monetary Fund, provided $42 billion in net inflows while bilateral creditors accounted for an additional $10 billion.
World Bank says Pakistan’s external debt stock rose to over $108 billion in 2020
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World Bank says Pakistan’s external debt stock rose to over $108 billion in 2020
- According to the bank’s International Debt Statistics 2022 report, Pakistan’s foreign debt has increased by 16 percent since 2018
- On average, the external debt stock of low- and middle-income countries rose by 5.6 percent to $8.7 trillion in 2020
Imran Khan’s party calls for ‘shutter-down’ strike on second anniversary of Pakistan elections
- Khan’s PTI party claims 2024 general elections’ results were rigged in their opponents’ favor
- Pakistan’s government denies the allegations, says polls were conducted in transparent manner
ISLAMABAD: Former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party has called on the masses to observe a countrywide “shutter-down” strike in protest against alleged rigging today, Sunday, on the second anniversary of the Feb. 8, 2024, general elections.
Millions of people took to polling booths across the country on Feb. 8, 2024, to vote for their national and provincial candidates. However, the polling was marred by a nationwide shutdown of cellphone networks and delayed results, leading to widespread allegations of election manipulation by the PTI and other opposition parties. The caretaker government at the time and the Election Commission of Pakistan (ECP) both rejected the allegations.
Khan’s PTI candidates contested the Feb. 8 elections as independents after the party was barred from the polls. They won the most seats but fell short of the majority needed to form a government, which was made by a smattering of rival political parties led by Prime Minister Shehbaz Sharif. The government insists the polling was conducted transparently and that Khan’s party was not denied a fair chance.
“Pakistan Tehreek-e-Insaf and the opposition alliance Tehreek-e-Tahafuz-e-Ayin-e-Pakistan (TTAP) are holding a nationwide shutter-down strike today,” Haleem Adil Sheikh, president of the PTI’s chapter in Sindh, told Arab News.
“We had appealed to the people to keep their businesses closed today because on this day, the people of Pakistan were deprived of their right to send their true representatives to parliament.”
Sheikh said the party was also mourning the victims of a deadly suicide blast in Islamabad on Friday which killed over 30 people.
TTAP chief and Leader of the Opposition in the National Assembly, Mehmood Khan Achakzai, appealed to police in Sindh and Punjab not to disturb people who were participating in the strike.
“The people of Pakistan must express their anger by closing their shops,” Achakzai said on Saturday while speaking to reporters.
Khan was ousted from power in April 2022 after what is widely believed to be a falling out with the country’s powerful top generals. The army denies it interferes in politics.
He has been in prison since August 2023 and faces a slew of legal challenges that ruled him out of the Feb. 8 general elections and which he says are politically motivated to keep him and his party away from power.
In January 2025, an accountability court convicted Khan and his wife in the £190 million Al-Qadir Trust land corruption case, sentencing him to 14 years and her to seven years after finding that the trust was used to acquire land and funds in exchange for alleged favors. The couple denies any wrongdoing.
