Debt Rolled Over.

Honouring the historic relations between the United Arab Emirates (UAE) and Pakistan, a $2 billion loan has been rolled over and an additional loan of $1 billion has been given as we face a severe cash crunch that has left little room for the government to even consider debt repayment. As both sides delve into a deeper relationship surrounding trade and investment, Pakistan must also devise a strategy through which its debt problem can be solved in the long-term.

As of right now, our country owes a cumulative of $100 billion in loans to the international community, $21 billion of which has to be paid yearly. This exorbitant amount of debt has put us in a tough spot as our foreign reserves keep dwindling to the point of reaching an eight-year low of $5.576 billion which is only enough to cover 3 weeks of necessary imports. In the meantime, inflation has skyrocketed, economic production has ebbed and investment is reaching alarmingly low levels as external investors have deemed Pakistan a country supporting an incredibly high risk factor. Financial institutions like the World Bank and International Monetary Fund have advised the country to consider debt servicing and this roll over of $2 billion...