Suchergebnisse

Pakistan has several times turned to external sources for development and economic restructuring purposes. The amount of debt Pakistan has accumulated over the years is now becoming a serious challenge. Moreover, Pakistan has been unable to utilise the borrowed resources efficiently which has placed the economy under financial stress. This paper will examine how the China-Pakistan Economic Corridor (CPEC) can offer support in overcoming the mounting external debt problem of the country. It will look at various aspects of CPEC which can help Pakistan generate foreign exchange earnings and reduce import costs. It will also discuss how Pakistan can reduce its dependence on foreign debt and become a more resilient economy. This paper also explores the limitations of CPEC in helping the government overcome its debt crisis and offers recommendations for utilising the Chinese investment to address debt-obligation challenges faced by Pakistan. It argues that the government must apply a comprehensive strategy for servicing its external debt.

The main goal of this paper is to discuss the dynamics of public debt servicing – both domestic and foreign – in Zambia, tracing the trends, reforms and challenges over the period from 1964 to 2015. The paper shows that the exceptional rise in public debt servicing obligations in Zambia over the period under review has been principally due to high domestic and foreign interest rates, frequent debt rescheduling at commercial rates, and capitalisation of non-liquidated service obligations at commercial rates. Also revealed in the paper is the fact that prior to 2005, Zambia experienced severe public debt servicing problems which eased after 2006 owing to debt relief initiatives and an economic rebound. Among the government debt service reforms discussed in the paper are structural adjustments in foreign exchange management, fiscal and monetary reforms, and aggressive engagement of traditional creditors. Primary among the identified challenges of public debt servicing in Zambia was the insistent economic crises that dogged the country during the study period. Notwithstanding the current public debt service sustainability and remarkable economic performance that characterise the country today, the paper found that the recent contraction of nonconcessional loans by the state poses a threat to debt service sustainability in future. Hence, the paper recommends, among other things, for aligning of public sector infrastructure spending with revenues to ensure budget sustainability, and to continue diversifying the economy to minimise the impact of external commodity price shocks on the economy. ; The main goal of this paper is to discuss the dynamics of public debt servicing – both domestic and foreign – in Zambia, tracing the trends, reforms and challenges over the period from 1964 to 2015. The paper shows that the exceptional rise in public debt servicing obligations in Zambia over the period under review has been principally due to high domestic and foreign interest rates, frequent debt rescheduling at commercial rates, and capitalisation of non-liquidated service obligations at commercial rates. Also revealed in the paper is the fact that prior to 2005, Zambia experienced severe public debt servicing problems which eased after 2006 owing to debt relief initiatives and an economic rebound. Among the government debt service reforms discussed in the paper are structural adjustments in foreign exchange management, fiscal and monetary reforms, and aggressive engagement of traditional creditors. Primary among the identified challenges of public debt servicing in Zambia was the insistent economic crises that dogged the country during the study period. Notwithstanding the current public debt service sustainability and remarkable economic performance that characterise the country today, the paper found that the recent contraction of nonconcessional loans by the state poses a threat to debt service sustainability in future. Hence, the paper recommends, among other things, for aligning of public sector infrastructure spending with revenues to ensure budget sustainability, and to continue diversifying the economy to minimise the impact of external commodity price shocks on the economy.

In the last decade, Pakistan's external debt obligations have
risen to an unprecedented level. This is despite the fact that the
country had been able to borrow on concessional terms from international
organizations and foreign governments unlike many other developing
countries. The situation has raised concern about the viability of the
strategy of excessive dependence on foreign sources and the problems it
poses for sustainable growth. Between 1970 and 1980 Pakistan's external
debt grew at an average rate of 11.3 percent. Althol1gh, during the
Eighties it has grown at a much slower rate, i.e. 2.37 percent, but by
1986-87 the level of total external debt had reached more than 12
billion U.S. dollars. A notable feature of this change has been that
since the mid-Seventies the debt service payments have increased at a
much faster rate compared with the outstanding debt.