High debt servicing costs will plague Pakistan as global interest rates rise with a consequent negative impact on investors. This was stated in an IMF report titled 'Regional Economic Outlook for the Middle East and Central Asia' uploaded on the Fund website.
It states, "Debt servicing costs (which are particularly high in Egypt, Lebanon and Pakistan) are likely to increase in line with anticipated higher global interest rates. High debt levels also deter investors and add to financial stability risks. Higher debt servicing costs will put further pressure on fiscal positions, reducing the scope for public spending - like on infrastructure and education - to support growth."
It further states that headline growth rates for the region's oil importers are projected to increase from 3.7 percent in 2016 to 4 percent in 2017 - thanks in large part to policies that have reduced fiscal deficits and improved the business climate, as in Morocco and Pakistan.
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