GDP and foreign aid shrinking, Pakistan economy crosses a line of control

Last week's cross-border skirmish has raised the stakes for PM Imran Khan to access foreign aid

The recent flare-up with India has possibly lengthened the odds against Pakistan to get the foreign aid that it needs immediately. The choices are, principally, two: From China or the International Monetary Fund (IMF). Of the total foreign loans Pakistan raised in 2017-18, more than 40 per cent came from these two sources. Islamabad also raises commercial loans of approximately the same amount from abroad. Foreign loans from both streams account for 30 per cent of the country’s GDP. 

Just after taking over as Prime Minister, Imran Khan had decided to reopen the deals his predecessor Nawaz Sharif had signed