The Case Against Rearrangement of Local Sovereign Debt

There has been talk lately about the requirem­ent of local currency debt rearrangement for Pakis­tan, necessitated by the fact that the government’s debt servicing, budgeted for 2023-24 at Rs7.4 trillion, has increased to approximately 75 per cent of total tax collection and exceeds the net revenues, after transfer to provinces, of Rs6.9tn.