Is strategic default a pathway towards economic rejuvenation?

Pakistan’s external debt has burgeoned into a formidable economic challenge, posing significant hurdles to its sustainable development and fiscal stability. As the nation grapples with the burden of mounting debt, there arises a pressing need to critically assess the feasibility of repayment from conventional revenue streams. This article elucidates the complexities surrounding Pakistan’s external debt and advocates for a strategic default as a pragmatic pathway towards economic rejuvenation and self-reliance. Pakistan’s external debt, comprising both public and private borrowings from foreign creditors, has surged to alarming levels in recent years, reaching approximately $113 billion. With a substantial portion allocated towards servicing interest payments, the debt burden has exacerbated fiscal constraints, hindering investments in crucial sectors such as healthcare, education, and infrastructure.