Part 8/9:
Solutions and Global Responsibility
To avert a spiraling crisis, it is imperative for Pakistan to address its economic burdens head-on. Reducing military expenditures, diversifying its economy, and addressing foreign debt through negotiations with creditors will be essential. The massive stock of external debt, primarily denominated in foreign currency, remains unsustainable and is a significant drain on the country’s foreign exchange reserves.
Most notably, restructuring the debt with a focus on forgiveness and concession from creditors, particularly China—Pakistan's largest bilateral lender—will be crucial. Given Beijing's substantial investments in Pakistan, it has a vested interest in ensuring Islamabad remains stable.