nahtanbob
Banned
Musharraf reduced the debt ratio because of a lot of rescheduling and debt relief in return for war on terror
Imran Khan was beneficiary of debt relief under Covid
Pakistan External Debt
- Thread starter ejaz007
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Musharraf reduced the debt ratio because of a lot of rescheduling and debt relief in return for war on terror
Imran Khan was beneficiary of debt relief under Covid
Pradotlc
Trusted Member
RajaBaja
Trusted Member
Another political thread. The data is erroneous! Take a look at these numbers, I copied them from your link. The GDP is $ 2059 billion and if debt is at 71%, its at $1470 billion. Not $ 1048 billion. That takes it towards 51-52% side. Our debt is higher, no doubt about it.
IK was taking loans to pay loans and that's where the start of the economic fall started. He didn't grow Pakistan's economy where Pakistan paid that debt you showed
. The US, India, Europe and almost all big nations have a lot of debt. China may be an exception. But we need "productive" debt, not loans to run the government. Our loans should be to finance projects to grow our economy.
Secondly, we came back from the bankruptcy and are now stabilizing. Our exports, services, FDI are all positive. Stock market has grown 300% more in 3 years compared to the ENTIRE history of Pakistan's past 75 years. People and institutions aren't pouring in billions of dollars in if our economy is destroyed like you are commenting.
All the reforms already under taken, will show results in 2028 when our economy and GDP will get re-balanced.
Here is what I copied from your link.
--------------------------------------------------
Pakistan Debt-to-GDP Ratio: 71.4%
DEBT TO GDP RATIO (PERCENTAGE)GDP in Pakistan is offically estimated to be $2,059.72 Billion US dollars at the end of 2025.
The economy of Pakistan is reported as having a debt-to-GDP ratio of 71.4%, indicating Pakistan's debt level is $1,048.40 Billion.
--------------------------------------------------
RajaBaja
Trusted Member
In Musharraf's time, we had billions of dollars flowing in. Who cared about expenses when so much money was coming in as free bee?
IK brought IMF into this country and then cheated them and committed an international fraud and left us in this terrible mess along with pissing off the Chinese, Saudis, Qataris, and the Americans. CPEC was temporarily shut down in his government otherwise the work that will start to put industry into work next year in Pakistan, would have started back in 2021!!
It's all about him. Never about Pakistan!
Pradotlc
Trusted Member
let me correct this
Nawj, PPP and their sugar daddies brought IMF into this country and then cheated them and committed an international fraud and left us in this terrible mess along with pissing off the Chinese, Saudis, Qataris, and the Americans. CPEC was is still shut down in his government otherwise the work that will start to put industry into work next year in Pakistan, would have started back in 1947
Pradotlc
Trusted Member
Dollar Darr many figure fudging activity against IMF
tribune.com.pk
Govt on defensive after IMF rebuke
Govt on defensive after IMF rebuke | The Express Tribune
State minister denies breach in agreement with international lender
tribune.com.pk
Last edited:
RajaBaja
Trusted Member
It's your right to like a person, it's your obligation to stand with your country and showcase who did wrong to the nation.
I hate politics. One of the reason if your post. You people lie so much on every topic. Reality is reality, can't change it. Just accept the fact your guy was just as incompetent as Nawj and Zardari, etc. The others still did mega projects, IK just looked good and spoke English to impress idiots and left. A simple google can help you:
Imran's deal with IMF and its violation reason for rise in inflation: Miftah Ismail
Ismail says Imran Khan's deal with IMF, its violation reason for inflation.Says Khan took biggest loan in country's history during his term, which is 80% of total debt of 71 years.We will get out of this mess and the stock...
www.geo.tv
Pradotlc
Trusted Member
On CPEC delay ... I am sure you have seen the video where a Chinese individual demanding by Shabaz Sharif why Pakistan has still stalled CPEC projects?...
every one know who delayed the CPEC projects under US pressure
Every one knows IMF fined Pakistan thanks to Darr's fudging
every one knows who bankrupted Pakistan and still bankrupting
every one know who rigged the elections
every except patwaris like you.
every one know who delayed the CPEC projects under US pressure
Every one knows IMF fined Pakistan thanks to Darr's fudging
every one knows who bankrupted Pakistan and still bankrupting
every one know who rigged the elections
every except patwaris like you.
Pradotlc
Trusted Member
Dar’s diatribe against the IMF
IN remarks reported widely in the media, Foreign Minister Ishaq Dar has been quoted complaining that the IMF is playing politics with Pakistan and changing the goalposts at critical moments to delay the disbursement of funds.
Those who know him and have spoken with him over the years know his propensity to speak at length off the cuff and also know that he harbours great mistrust, bordering on animus sometimes, towards the IMF. This is not the first time he has rolled out the ‘geopolitics’ card when talking about delays in getting Fund approval for disbursement of the next tranche. He did the same as finance minister in 1999 and again in 2022, 2023.
But is it true? More likely what Pakistan is facing is an absence of geopolitics on the IMF board. Between 2001 and 2021, the country had more or less a free run of things at the Fund, when programme approvals came swiftly and reviews went smoothly and waivers were granted without too much trouble. It is not difficult to note what these dates denote: the arrival and continued deployment of American troops in Afghanistan. Since August 2021, when the deployment ended, so did Pakistan’s ‘special treatment’ at the Fund.
Dar wishes to argue that the Fund held out completion of the reviews under the last Extended Fund Facility “for eight months”, as he did in his reported remarks given in London, due to geopolitics. He has been quoted as saying the Fund wanted to push Pakistan into a default. His reference was to the months he was finance minister from September 2022 till June 2023. A Fund review did indeed stall during those months with the programme drawing to a close, with the last few reviews unfinished.
But if the IMF was trying to push Pakistan into default, why did the same Fund mobilise so expeditiously to arrange a Stand-by Arrangement (SBA) in July 2023, literally weeks after the Dar government handed over power to an interim set-up? Why try to push a country into default, then move rapidly to rescue the same country at the last minute and prevent such a default?
The answer is simple. The Fund was not trying to push Pakistan into default or playing geopolitics. It was simply trying to get some commitments to be upheld, which were not being upheld, and in the absence of geopolitics, Pakistan’s traditional resort to external bailouts had shrunk considerably.
Consider a few numbers to get a sense of how things moved from that July to today. Take a look at where Pakistan’s projected macro targets were meant to be as per the projections in the September 2022 review, when Dar was finance minister, and July 2023, when he handed over power to an interim set-up.
In September 2022, FBR revenues for the ongoing fiscal year (FY25) were projected to be Rs9.7 trillion. In the July SBA, this projection had risen to Rs11tr. One could look at these numbers and argue that the Fund shifted the goalposts by raising the revenue target by more than a trillion rupees.
But then look at the other side of the equation. In September 2022, current expenditures for that year were meant to come in at Rs11.1tr by year-end. This projection had then been revised up to Rs12.3tr during the review, an upward revision of more than one trillion rupees! By the time the year ended in June 2023, current expenditures came in at Rs14.4tr, overshooting their newly revised target by more than two trillion rupees!
Targets were strictly adhered to in the SBA of July 2023, the main reason why the country was able to pull back from the brink of a catastrophic default. But the memory of agreeing to targets then — either failing or refusing to abide by them, and thereby prolonging the spell of macroeconomic uncertainty in the country — could be easy to forget. Go through the targets one by one. From fiscal to external sector, the story in the past few years is the same: weak ownership of the stabilisation programme.
None of this should be surprising. The government that took power following the April 2022 vote of no-confidence inherited an economy poised for massive instability with a runaway situation on the current account and the fiscal deficit. Faced with a ferocious political contest at the same time as it had to undertake a painful economic adjustment, the government dithered.
Prior to this, the outgoing government of the PTI had similarly found it very difficult to unwind the Covid stimulus and resume the Fund programme, and as its political challenges mounted in the run-up to the vote of no-confidence, its commitment to adhere to Fund targets diminished. In a sense, from 2020 onwards, all governments (except for the interim set-up) have been unable to really walk the path of adjustment, due in large part to the intensity of the political competition plaguing the country since then.
It might be tempting for Dar to blame the IMF for this, but it is difficult to believe that this inability to adhere to commitments would be without consequences. The more the country dithers on its own commitment to its own macroeconomic stabilisation, the less its creditors will feel assured that this country can meet its external debt service obligations in a timely manner. The more this feeling grows, the more assurances they will need before becoming engaged with this country.
It is as simple as that. It is very difficult to believe that there is any geopolitical interest of any country out there which is advanced by watching Pakistan default. Such an event serves neither the foreign policy interests of any of the larger powers Pakistan is in debt to, nor does it serve the economic interests of anyone. More than outsiders, the government must realise that safeguarding the hard-fought stability of our time is its singular responsibility.
The writer is a business and economy journalist.
Dar’s diatribe against the IMF
More likely what Pakistan is facing is an absence of geopolitics on the IMF board.
www.dawn.com
hydrabadi_arab
SpeedLimited
Pakistan’s outstanding power sector circular debt stood at PKR 1,661 billion in July 2025, marking a 2.9% month-on-month rise from PKR 1,614 billion in June, but a significant 29.3% year-on-year decline from PKR 2,351 billion in July 2024, according to data compiled by Arif Habib Limited (AHL).
Within the stock, payables to power producers accounted for the largest share at PKR 908 billion, up 5.5% MoM from PKR 861 billion, but down 41.8% YoY from PKR 1,561 billion.
GENCOs’ payables to fuel suppliers remained unchanged at PKR 93 billion, down 13.1% YoY from PKR 107 billion, while the amount parked in Power Holding Limited (PHL) stayed flat at PKR 660 billion, 3.4% lower than PKR 683 billion in July 2024.
On a fiscal year-to-date (FYTD) basis, circular debt increased by PKR 47 billion in July 2025, compared with a reduction of PKR 42 billion in the same period last year and PKR 45 billion in June 2025. The FYTD rise was primarily driven by DISCO underperformance, which contributed approximately PKR 87 billion in losses and under-recoveries, down from PKR 147 billion in the comparable period last year.
Other factors contributing to the FYTD increase included budgeted but unreleased subsidies of PKR 35 billion, pending generation cost adjustments of −PKR 6 billion, and non-payment by K-Electric of PKR 3 billion. Prior-year recoveries and other adjustments reduced the burden by PKR 72 billion, while DISCO inefficiencies added PKR 41 billion and under-recoveries contributed PKR 46 billion.
The report highlights that, despite the month-on-month increase, the overall stock of circular debt fell sharply year-on-year, underscoring ongoing improvements in sector financial management even as DISCO inefficiencies continue to drive short-term increases.
Within the stock, payables to power producers accounted for the largest share at PKR 908 billion, up 5.5% MoM from PKR 861 billion, but down 41.8% YoY from PKR 1,561 billion.
GENCOs’ payables to fuel suppliers remained unchanged at PKR 93 billion, down 13.1% YoY from PKR 107 billion, while the amount parked in Power Holding Limited (PHL) stayed flat at PKR 660 billion, 3.4% lower than PKR 683 billion in July 2024.
On a fiscal year-to-date (FYTD) basis, circular debt increased by PKR 47 billion in July 2025, compared with a reduction of PKR 42 billion in the same period last year and PKR 45 billion in June 2025. The FYTD rise was primarily driven by DISCO underperformance, which contributed approximately PKR 87 billion in losses and under-recoveries, down from PKR 147 billion in the comparable period last year.
Other factors contributing to the FYTD increase included budgeted but unreleased subsidies of PKR 35 billion, pending generation cost adjustments of −PKR 6 billion, and non-payment by K-Electric of PKR 3 billion. Prior-year recoveries and other adjustments reduced the burden by PKR 72 billion, while DISCO inefficiencies added PKR 41 billion and under-recoveries contributed PKR 46 billion.
The report highlights that, despite the month-on-month increase, the overall stock of circular debt fell sharply year-on-year, underscoring ongoing improvements in sector financial management even as DISCO inefficiencies continue to drive short-term increases.
hydrabadi_arab
SpeedLimited
Pakistan has recorded one of the “sharpest drops” in sovereign default risk globally and now ranks as the second-best performer in the world, according to Credit Default Swap (CDS)-implied data reported by Bloomberg, adviser to the finance minister Khurram Schehzad said on Sunday.
A Credit Default Swap-implied probability estimates the likelihood that a borrower — such as a company or a country — will fail to repay its debt. This probability is derived from the market price of its CDS, which is a type of financial insurance investors buy to protect themselves against the risk of default, according to the International Monetary Fund (IMF).
If the cost of a CDS drops, it means investors see the borrower as less risky. So, when Pakistan’s CDS-implied probability falls sharply, it indicates that global investors believe the country’s chances of defaulting on its debt have significantly decreased.
“As per the latest data posted by Bloomberg, Pakistan stands out globally as the 2nd most improved economy in terms of reduction in sovereign default risk, as measured by CDS-implied default probability globally,” Schehzad wrote in a post on X.
He added that the country stood second only to Turkiye in the global emerging market (EM) rankings in default risk reduction, as the country has recorded one of the sharpest drops in sovereign default risk globally over the last 15 months (from June 2024 to September 2025).
“Notably, Pakistan is the only country in the EM sample showing consistent quarterly improvement across the past year,” he wrote, adding that the country’s default probability has decreased by 2,200 basis points.
“This marks the sharpest decline among major EMs, ahead of South Africa (3 per cent), EI Salvador (2pc). In contrast, countries like Argentina, Egypt, Nigeria, and others have seen their default risks rise.”
Schehzad further said the sharp decline in the country’s risk signalled “strengthening investor confidence, underpinned by macroeconomic stabilisation, structural reforms, timely debt servicing, and staying the course with the International Monetary Fund.”
He also cited the recent positive ratings movements from global credit rating agencies like S&P Global, Fitch, and Moody’s as a factor.
In a message to investors, Schehzad said. “Pakistan is steadily rebuilding market credibility, standing out as one of the most improved sovereign credit stories in the emerging market universe.”
Pakistan faced a prolonged economic crisis over the last few years, marked by critically low foreign exchange reserves, an acute balance-of-payment crisis, and the looming risk of default in 2023. The crisis was averted after the IMF released a crucial loan tranche, while support from friendly countries, including China, the United Arab Emirates, and Saudi Arabia, also played a key role.
After averting default, Pakistan has undertaken tough IMF-prescribed reforms to stabilise its economy and bolster macroeconomic indicators.
A Credit Default Swap-implied probability estimates the likelihood that a borrower — such as a company or a country — will fail to repay its debt. This probability is derived from the market price of its CDS, which is a type of financial insurance investors buy to protect themselves against the risk of default, according to the International Monetary Fund (IMF).
If the cost of a CDS drops, it means investors see the borrower as less risky. So, when Pakistan’s CDS-implied probability falls sharply, it indicates that global investors believe the country’s chances of defaulting on its debt have significantly decreased.
“As per the latest data posted by Bloomberg, Pakistan stands out globally as the 2nd most improved economy in terms of reduction in sovereign default risk, as measured by CDS-implied default probability globally,” Schehzad wrote in a post on X.
He added that the country stood second only to Turkiye in the global emerging market (EM) rankings in default risk reduction, as the country has recorded one of the sharpest drops in sovereign default risk globally over the last 15 months (from June 2024 to September 2025).
“Notably, Pakistan is the only country in the EM sample showing consistent quarterly improvement across the past year,” he wrote, adding that the country’s default probability has decreased by 2,200 basis points.
“This marks the sharpest decline among major EMs, ahead of South Africa (3 per cent), EI Salvador (2pc). In contrast, countries like Argentina, Egypt, Nigeria, and others have seen their default risks rise.”
Schehzad further said the sharp decline in the country’s risk signalled “strengthening investor confidence, underpinned by macroeconomic stabilisation, structural reforms, timely debt servicing, and staying the course with the International Monetary Fund.”
He also cited the recent positive ratings movements from global credit rating agencies like S&P Global, Fitch, and Moody’s as a factor.
In a message to investors, Schehzad said. “Pakistan is steadily rebuilding market credibility, standing out as one of the most improved sovereign credit stories in the emerging market universe.”
Pakistan faced a prolonged economic crisis over the last few years, marked by critically low foreign exchange reserves, an acute balance-of-payment crisis, and the looming risk of default in 2023. The crisis was averted after the IMF released a crucial loan tranche, while support from friendly countries, including China, the United Arab Emirates, and Saudi Arabia, also played a key role.
After averting default, Pakistan has undertaken tough IMF-prescribed reforms to stabilise its economy and bolster macroeconomic indicators.
Pakistan Space Agency
Elite Member
Business Recorder: Default risk improvement: Pakistan ranks second globally
Pradotlc
Trusted Member
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