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Former Prime Minister Imran Khan has said in an interview with the Financial Times that Pakistan will struggle to break out of the cycle of ongoing debt repayments without implementing significant reforms. He criticized the current government for its inability to pull the country out of its current economic crisis and emphasized the need to break free from the borrowing cycle that has hindered the growth of developing economies.
Khan said that his party would prioritize domestic reforms over seeking debt relief, ruling out a default. He questioned whether borrowing more money was the solution to the country’s financial problems or whether restructuring the government’s operations was necessary.
The country is currently in talks with the International Monetary Fund (IMF) to secure the final tranche of $1.1 billion since February. This amount is part of a larger $6.5 billion bailout package. Khan pointed out that the debt was growing while the economy was shrinking, and said that his party had started thinking that they were stuck.
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Khan also highlighted the need to increase the country’s dollar income through exports to pay off its debts, including commercial debts, Chinese debts, and debts owed to the Paris Club. He stressed that increasing exports was essential to servicing all of Pakistan’s debts.
