Amir Khalil Buriro
Pakistan’s dollar reserves have been diminished during the past few years.In order to prevent from further harms, Pakistan borrows money from the World Bank or the International Monetary Fund (IMF) or even from countries like USA, China, and Saudi Arabia during difficult times to relieve the burden of a negative trade. Although external debt helps Pakistan in short term to get rid from some problems but there are certain consequences such as High inflation, rising interest rates, and slow economic growth. furthermore, It frequently causes Pakistan to sink into debt for example continuously borrowing that limits Pakistan to invest in education, Heath and Infrastructure.Moreover,due to these external loans, Pakistan is unable to create an autonomous fiscal policy, and its struggling economy is at the mercy of powerful lenders like the IMF and World Bank. To conclude, Pakistan economy is at sinking level due to excessive debt borrowing which is main hindrance in economic growth.
