Source: Agencies
Official data showed that Pakistan is obligated to pay $25 billion to service the debt burden during the current fiscal year, which began on July 1, while the national currency returned to a rapid decline despite the International Monetary Fund’s approval at the end of last month to grant $3 billion in financing for a period of nine months. For a country that narrowly escaped bankruptcy.
Debt servicing has become a major challenge for the country due to the unprecedented high interest rate. The burden of external debt also increased in light of the high risks of non-payment and high interest rates.
The rupee fell for the seventh consecutive session against the dollar, losing 3.98% of its value, bringing the US currency to 287.92 rupees in the interbank market, and to 293 rupees in the open market, according to the Pakistani newspaper Dawn, yesterday, according to analysts in the exchange market.
Analysts pointed out that the dollarization of the economy is expanding in general, as citizens buy dollars to protect their savings, despite the fact that banks offer returns of up to 22% on local currency deposits.