Pakistan after a decade lost nearly USD 2.6 Billion in a Week

After a decade or so, in just 1 week, Pakistan's forex reserve has declined to around USD 2.6 billion due to external debt repayments. It is after a decade or so that Pakistan's forex reserves have declined by about USD 2.6 billion a week due to external debt repayment. Mind that after Argentina, this is one of the highest debt repayments by a country that is on an IMF program. Moreover, the reserve standing is USD 9 billion for the State Bank of Pakistan for the 19th of June 2025. 

Pakistan's external debt repayment is the major reason Pakistan applies for an IMF program, as Pakistan has to pay annually more than USD 25 billion, including rollovers, interest payments, and commercial loans. There is no silver bullet that Pakistan can dodge this now, as Pakistan has to pay these loans; otherwise, Pakistan would be considered in external default if Pakistan is unable to make an external debt repayment on time. 

The best thing the Pakistani government can do is restructure its debt, as it is a fact that Pakistan cannot pay these external debt repayments unless Pakistan increases its exports. Pakistan has to hire a firm like Sri Lanka and manage to get all Pakistani loan creditors on board, and Pakistan also has to restructure its loan debt to enable external debt restructuring. This move will allow Pakistan to rebuild its forex reserves like Brazil did in the early 1980s.