Pakistan debt crisis deepens

broker vs banks

A report produced by the State Bank of Pakistan (SBP) has outlined the significance of the country’s growing debt crisis.

External debt and liabilities within the country increased from $55.901 billion in 2009/2010 to $60.116 billion in 2010/2011. This represents a rise of 7.5%.

Worryingly, public debt also increased, from $52.107 to $56.315.

These figures demonstrate the global reach of a financial crisis which does not seem to recognise boundaries any longer.

There was some good news in the shape of a small decline in foreign exchange liabilities, from $1.2 billion to $1 billion.

This was a rare piece of positive news among a myriad of worrying trends though as fiscal deficit and inadequate external funding resulted in a 30% increase in government borrowing over the course of the last year.

Whatever way you view the figures, it is alarming for the immediate future of the Pakistan economy in general.

In 2010, Pakistan was announced as the third largest external debt recipient country in the Asian region after Nepal and Sri Lanka.

Pakistan external debt reached $57.2 billion last year, which translated as 33% of Gross Domestic Product (GDP) by December 2010.

The latest figures suggest things are not getting much better and the country is clearly going to need to make a big effort over the coming months to regain the confidence of the nation and the faith of the global financial markets.

Transfer Money to Pakistan

If you are looking to invest in Pakistan, think carefully about how you will be transferring money to Pakistan. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to Pakistan – which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.

Company Details

Pakistan debt crisis deepens

Get a quick quote

Open Account with TORFX

TORFX are located at:
Penlowarth, Penzance, Cornwall, TR18 4ED, United Kingdom

Get a Quick Quote

Newsletter Signup to CMT

Sign up to our foreign exchange newsletter to receive news updates directly by email

Compare Money Transfer will not Share your details!

Bank Exchange Rates Comparison

High St Bank Exchange Rate

All Rights Reserved: Copyright 2006 - 2018 Compare Money Transfer Limited offering FCA Regulated Suppliers - 34 New House, 67-68 Hatton Garden, London, EC1N 8JY. +44 (0) 843 357 4882