Determinants of Debt Rescheduling in Pakistan
Pakistan’s total debt has reached to 115 percent of GDP in 2001 [Pakistan (2001)]; per capita debt exceeded per capita GDP. The outstanding stock of public debt was roughly 400 percent of government revenue in 1980 and it increased to 624 percent by mid-2000 [Pakistan (2001)]. It is the only country in South Asia, classified as “severely indebted low-income country” by the World Bank (2001). Debt servicing is more problematic than debt. It has been 2.5 percent of GNP during seventies and increased to 3.5 percent of GNP during eighties. In 2001, debt servicing consumes more than seventy percent government revenue and leaves less than thirty percent for every thing else [The News (2001)]. This increase in debt and debt servicing has affected creditworthiness of the country and raised the concern about its future growth prospects. The deterioration in all the indicators, like debtexport ratio, debt-GDP ratio, debt servicing to GDP ratio etc. raised the risk of default and increased vulnerability of the country to external and internal shocks. One possible way out is the rescheduling of debt to minimise total loss to creditor countries as well as subside the burden of debtor country. Pakistan’s debt has been rescheduled many times during the last thirty years.
Volume (Year): 40 (2001)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: P.O.Box 1091, Islamabad-44000|
Web page: http://www.pide.org.pk
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:40:y:2001:i:4:p:689-704. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.