ISLAMABAD: Moody’s Investors Service has predicted that Pakistan’s external debt will grow to $79 billion by June this year, higher than initial estimates suggested, and the country’s weak fiscal strength will weigh in on its ability to afford the ever growing debt burden.
In its latest report, Moody’s Investor Service – the international credit rating agency -said that Pakistan’s challenges include a relatively high general government debt burden, weak physical and social infrastructure, a fragile external payments position and high political risk.
By the end of fiscal year 2016-17, Pakistan’s external debt will increase to $79 billion out of which the public sector component will be $77.7 billion, according to Moody’s.
The forecast for the outgoing fiscal year is much higher than what was earlier assessed on the basis of data released by the State Bank of Pakistan.