Pakistan has been struggling with its external debt situation for years, and urgently needs comprehensive reforms to reduce its reliance on external loans, according to WealthPK. To boost domestic revenue and reduce the need for external borrowing, Pakistan needs effective tax reforms that can widen the tax base, curb tax-evasion, and improve tax collection,” Azfar added. Nadeem ul Huq, Vice Chancellor Pakistan Institute of Development Economics (PIDE), told WealthPK that Pakistan's external debt challenge is a pressing issue that needs immediate attention and comprehensive reform efforts. Attracting foreign direct investment (FDI) is another way to reduce external borrowing. Pakistan needs to create an attractive investment climate by simplifying regulations, protecting property rights, and offering incentives to foreign investors,” he said.
