Pakistan is currently confronting a difficult economic condition, according to the United Nations Development Programme (UNDP), with a debt of “almost Rs 50 trillion ($250 billion)”.
On June 21, 2022 in Islamabad, the Ministry of Economic Affairs Division (EAD), in partnership with the UNDP, will hold a high-level policy conference titled “Global Economic Situation and Effective Debt Management Strategies” to examine debt management solutions.
The seminar’s strategic objectives will include a discussion of existing global and regional economic scenarios relevant to Pakistan, with a focus on the current debt situation and challenges it poses, as well as the formulation of strategic recommendations and sectoral solutions for effective debt management in order to maintain financial stability and protect Pakistan’s economy from external shocks.
Pakistan, the world’s fifth-most populous country, is a lower middle-income country hoping to be among the world’s ten greatest economies by 2047, according to the UNDP’s seminar brief. Pakistan, on the other hand, is currently facing a difficult economic scenario, with a debt of more than Rs 50 trillion ($250 billion).
On the macroeconomic front, Pakistan faces significant challenges, including: I rising current account deficits, fiscal deficits, and trade imbalances; (ii) depleting foreign exchange reserves, resulting in currency depreciation and high interest rates; (iii) a narrow tax base, resulting in a low tax-to-GDP ratio; and (iv) rising energy prices and subsidies, which are putting a strain on the national budget.