Historical Perspective of External Debt in Pakistan: Identifying Key Determinants / Strategies


  • Nabila Asghar Associate Professor Department of Economics, Division of Management and Administrative Science, University of Education Lahore, Pakistan
  • Muhammad Asif Amjad Ph.D. Scholar Department of Economics and Statistics, University of Management and Technology, Lahore, Pakistan
  • Hafeez-ur- Rehman Professor of Economics Department of Economics and Statistics, University of Management and Technology, Lahore, Pakistan




External Debts, Pakistan, Historical Perspective, Debt Servicing, Key Determinants


The non-developmental use of external debt creates macroeconomic instability which results in massive unemployment, poverty, inflation, and political instability in any country. The present study is focused on historical perspective of external debt in Pakistan. This study found that the leadership of Pakistan has heavily borrowed external debt without considering its sustainability and repayment capacity. On the basis of the systematic literature review of past studies, the key policy variables are highlighted to reduce the burden of external debt. The study indicated that external debt burden of Pakistan can be managed by lowering the consumption oriented imports, focusing targeted inflation, exchange rate and by promoting sustainable inclusive economic growth. The policy mix based on efficient management of macro-economic indicators are helpful in addressing external debt in Pakistan.


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How to Cite

Asghar, N. ., Amjad, M. A. ., & Rehman, H.- ur-. (2022). Historical Perspective of External Debt in Pakistan: Identifying Key Determinants / Strategies. Review of Economics and Development Studies, 8(1), 13-24. https://doi.org/10.47067/reads.v8i1.427

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