Pakistan who starve money can face serious economic problems because his foreign exchange reserves are running low in the midst of increasing external debt services, according to media reports on Wednesday.

The country’s external debt service rose to USD 10.886 billion in the first three quarters of 2021-22 compared to USD 13.38 billion in all FY21. It was only USD 1,653 billion in 1QFY22 against USD 3.51 billion in the first quarter of 2020-21, but jumped to USD 4,357 billion in 2QFY22 an.

The country had faced a serious threat from the external front when the foreign exchange reserves of the Pakistani state bank fell to one digit despite the entry of USD 2.3 billion from China at the end of last month, the Dawn newspaper reported.

Increasing the size of external debt service in each quarter shows that the government has borrowed dollars with higher commercial rates to meet the obligations of foreign debt payments,” the report said.

Initially, Beijing had agreed to overthrow syndicated loans before the previous PTI government dismissal. However, the government of Prime Minister Shehbaz Sharif had to wait for two months to secure Chinese loans.

The financial sector and other economic stakeholders are still not satisfied with the hidden costs of China loans. The market is full of speculation that Chinese loans are taken at a very high level.

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