Pakistan's Economy: Foreign Loans Keep "Bankrupt" Nation Afloat Amidst Crisis

• Pakistan's economy, despite a $410 billion GDP, relies heavily on foreign loans to cover daily expenses, debt servicing, and boost reserves, rather than for development.
• Foreign assistance surged over $3 billion in early FY, a 14% hike, with $1.82 billion received in Q1 from various bilateral and multilateral lenders.
• Key contributors include China ($119.77M loans, $4B term deposits), Saudi Arabia ($500M, $5B term deposits), IsDB ($383M), and World Bank's IDA ($343.15M).
• The IMF, a critical lender, recently approved $1.2 billion and has bailed out Pakistan nearly two dozen times, signaling creditworthiness to other international lenders.
• IMF demands structural reforms, tax hikes, and subsidy cuts; Pakistan is responding by selling state assets like a majority stake in Pakistan International Airlines (PIA).

Why It Matters: Pakistan remains deeply dependent on foreign loans and IMF bailouts, facing calls for fundamental economic reforms to achieve sustainable growth.