According to the Finance ministry of Pakistan, the foreign debt burden has increased to $7.2 billion due to the decreasing PKR value. This rise in debt burden has caused a serious threat to country’s economy. According to the ministry official the foreign debt was 35% of the GDP in the year 2007. But in 2010 it has reached to 75% of the GDP. On the other hand the foreign direct investment has gradually decreased to the minimum level of about 2 billion this year. The economic growth of the country has remained at 2.6%, the worst level observed in last two years. The prices of petroleum good has increased immensely, which has affected the consumer good prices as well. Moreover, due to the increase of 50 basis points to 13% by SBP has also increased the cost of imports.

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