From the Nineteen Eighties to the present, Pakistan's mounting debts have been the subject of debate and consideration by policy makers and economists. Unfortunately, foreign debt is one of the biggest significant issues which downsize Pakistan’s Economy. This study aimed to investigate the effects of external debt restructuring on the country's economic system. The objective was to study the various factors that affect Pakistan's economy, such as external debt, growth,saving, and foreign direct investment. Annual panel data was taken from the World Bank and used to manipulate the results. External debt is the main factor that harms the country's structured variable GDP, economic condition and growth as well. It has been concluded that Pakistan should consider debt forgiveness and invite foreign direct investment. Although exports are beneficial to the country's economy, they should be lifted to increase its financial system. The adverse effects of external debt on the boom are very apparent now a days.
1-Syed Waqas Ali Kausar National University of Modern languages, Islamabad, Pakistan.2-Rizwan Ali National University of Modern languages, Islamabad, Pakistan.3-Tariq Ahmed Khan PhD scholar, Department of Sociology PMAS, Aired University, Rawalpindi, Punjab, Pakistan.