Foreign debt will be Pakistan’s economic touchstone in 2024

After the February 2024 elections, Pakistan's newly elected government will face the crucial task of rescheduling its foreign debt payments amidst failing export earnings. With its current outstanding foreign debt estimated at US$124.5 billion or 42 per cent of GDP, it will need to negotiate with numerous stakeholders including multilateral institutions, banks and foreign financial organisations. Pakistan could potentially look to China for concessions, in light of their contribution to the debt through their Belt and Road Initiative.