Pakistan's Debt Trap Deepens: Short-Term Borrowing Threatens Economic Stability

• Pakistan's fragile external financing framework and dependence on foreign loans expose it to recurring economic crises.
• The debt portfolio is heavily skewed towards short maturities, limiting the government's ability to absorb economic shocks.
• External debt and liabilities reached approximately $134.5 billion by September 2025, with significant near-term repayments.
• Analysts warn that recent reserve improvements are temporary and do not address structural weaknesses or formidable future obligations.
• Experts urge reforms in taxation, energy pricing, industrial output, and promotion of value-added exports to achieve sustainable economic security.