What significant financial challenge does Pakistan face in the fiscal year 2025, according to Fitch Ratings?
AA decrease in remittances
BOver $22 billion in external debt repayments
CA budget deficit exceeding $10 billion
DA decline in foreign direct investment
Correct answer
B. Over $22 billion in external debt repayments
Explanation
Fitch Ratings reports that Pakistan faces substantial external financing risks, with over $22 billion in external debt repayments due in the fiscal year 2025, including approximately $13 billion in bilateral deposits. Securing sufficient external financing remains challenging due to large maturities and existing lender exposures.