Pakistan Faces Deepening Debt Crisis With Risk of Default

• Pakistan's debt crisis is more severe than anticipated, with the possibility of an inevitable default and devastating economic spiral

• The country's debt levels have grown at a much faster pace than income over the past decade

• Pakistan faces $49.5 billion in debt repayments in 2024, 30% of which is interest

• The majority of debt has funded consumption rather than productive investments to grow the economy

• Without sweeping reforms, Pakistan will continue sinking towards inevitable default, triggering an economic catastrophe