ISLAMABAD: The country’s total debt and liabilities have been recorded at Rs. 63.868 trillion as per the State Bank’s data at the end of the Q2 of fiscal year 2022-23. The increase was observed despite a decrease in foreign debt, by $3.851 billion due to suspension of the International Monetary Fund (IMF) during the first half of the current fiscal year.
The data shows that Pakistan’s debt stock increased by Rs4.169 trillion to Rs.63.868 trillion during the first half of the current fiscal year.
The country’s total debt was increased from Rs.56.764 trillion to Rs 60.718 during the first half of the fiscal year. The same debt was recorded at Rs 62,407 trillion at the end of the first quarter. Since then the increase has been close to 2.3%. This included the government debt, which was recorded at Rs 33.1 trillion, external debt worth Rs 26.127 trillion, debt of public sector enterprises worth Rs1.474 trillion, during the period.
Out of total government domestic debt worth Rs.33.116 trillion, the government raised Rs2614 billion during the six months through Pakistan investment Bonds. The total debt of the Pakistan investment bonds climbed to Rs.20.301 billion in Dec 2022.
The debt stock of GOP Ijara Sukuk raised from Rs 2,280 billion to Rs.2,644 billion.
Financial obligations of the Saving Schemes (Net of Prize Bonds) were reduced from Rs.3.208 trillion to Rs.2,961 billion during the first half of the current fiscal year. The government’s debt on T-bills, decreased from Rs.6.752 trillion to 6,091 trillion during the period
The external debt stock of the government was increased from Rs.16.747 trillion to Rs.17.880 trillion during the first half of the current fiscal year. The external debt stock in terms of PKR was increased by Rs1.1 trillion during six months mainly due to free fall of local currency depreciation during the rupee. The USD appreciated by Rs 22 from Rs 204 to Rs 226 during the first half of the current fiscal year, according to the data of the State Bank.
Contrary to that, the foreign debt stock in terms of USD was reduced by $3.851 billion to $126.345 billion from $130.636 billion during the first half of the current fiscal year. The government has also repaid $5 billion during the first half of the current fiscal year causing a major dent in the SBP’s liquid foreign currency reserves.
The external debt was reduced from $99.97 billion to $97.544 billion while the external debt of public sector enterprises was reduced from $8.199 to $7.914 billion during the period. The foreign debt of banks was also reduced by $5.947 billion to $5.283 billion and debt of the private sector decreased by $11.649 billion to $11.492 billion during the first half of the current fiscal year.
Reduction in the foreign debt obligations was mainly due to suspension of the IMF loan program after non-compliance of the conditions. However, the Pakistani authorities and IMF concluded staff level talks last week under the ninth review meeting. It is expected that both parties will reach at staff level agreement during next week as Pakistan has increased the tariffs of power and gas and taken new tax measures of Rs.170 billion in compliance with the prior conditions of the IMF.
FAQs
Pakistan's total debt and liabilities reached Rs 81.194 trillion by the end of December 2023, showing a 27.2% increase from Rs 63.834 trillion in the same period of the previous fiscal year.
What is the reason for increasing debt in Pakistan? ›
Pakistan's external debt has increase because of misuse of loans, many developmental projects remained uncompleted, and due to political instability and frequent changes in government policies because each new government planed their new projects and new policies further over burden the economy.
Who does Pakistan owe its debt to? ›
About 15% of the external debt which is estimated around US$17.1 billion (6.15% of GDP) is owed to China due to China-Pakistan Economic Corridor. Pakistan is facing a "huge external financing gap" of $4 billion, with China, Saudi Arabia, and the UAE expected to provide additional support.
How much debt Pakistan has to pay in 2024? ›
KARACHI: The central bank has reported that Pakistan has to pay $27.47 billion in foreign debt and interest cost over one year till the end of November 2024 and arrangements have already been made to pay a large proportion of the debt under the IMF loan programme.
What is the debt situation in Pakistan? ›
Of the US$128.1 billion foreign debt in September 2023, US$99.1 billion is the foreign debt of Pakistan's government and state-owned enterprises. Of this, the government owes US$37.1 billion to multilateral institutions, including the World Bank and Asian Development Bank.
How much is Pakistan under debt? ›
Pakistan External Debt reached 131.2 USD bn in Dec 2023, compared with 129.7 USD bn in the previous quarter. See the table below for more data.
Is debt a problem for Pakistan? ›
HOW MUCH DEBT IS THERE? Pakistan's debt-to-GDP ratio is already above 70% and the IMF and credit ratings agencies estimate that the interest payments on its debt will soak up 50% and 60% of the government's revenues this year. That is the worst ratio of any sizable economy in the world.
Is Pakistan in debt crisis? ›
As per a new report, Pakistan's per capita debt increased by 36% from $823 in 2011 to $1,122 in 2023. Pakistan's debt situation is dire, worse than the IMF's assessment. Stock market impact and economic pessimism highlight the urgency for a new IMF bailout.
Which government took the most debt in Pakistan? ›
The PTI government's domestic borrowing was also the highest when compared to the other three governments. The PTI government borrowed Rs 9,136 billion during its tenure compared to PML-N's Rs 6,896 billion, PPP's Rs 6,919 billion and Musharraf's Rs 1,212 billion.
Which country gives loan to Pakistan? ›
Apart from the UAE, Saudi Arabia has deposited USD 5 billion with the State Bank of Pakistan. Following the loan rollover by the UAE, the interim government requested the International Monetary Fund (IMF) to dispatch a new mission this month for talks for the last loan tranche of USD 1.2 billion.
Synopsis. In a major relief to the cash-strapped country, Pakistan received USD 1 billion from China, ARY News reported citing the State Bank of Pakistan. "This is to inform you that USD 1 billion has been received from China," said the central bank in a brief message to journalists on Friday night.
What caused Pakistan economic crisis? ›
Pakistan has experienced an ongoing economic crisis as part of the 2022 political unrest. It has caused severe economic challenges for months due to which food, gas and oil prices have risen. The Russian invasion of Ukraine has caused fuel prices to rise worldwide.
Which country has highest debt? ›
Profiles of Select Countries by National Debt
- Japan. Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP. ...
- United States. ...
- China. ...
- Russia.
KARACHI, Jan 11 (Reuters) - The International Monetary Fund's board has approved a roughly $700 million loan for Pakistan under a $3 billion bailout, the fund and the finance ministry said on Thursday.
How much is Afghanistan in debt? ›
Afghanistan external debt for 2021 was $3,530,754,340, a 16.14% increase from 2020. Afghanistan external debt for 2020 was $3,040,072,312, a 14.22% increase from 2019. Afghanistan external debt for 2019 was $2,661,685,957, a 0.64% decline from 2018.
Is Pakistan in huge debt? ›
Pakistan's external public debt increased by $1.2 billion in six months to $86.358 billion, primarily from the World Bank and China, resulting in $3.5 billion in Q3 2023.
Does Pakistan have a lot of debt? ›
Tabadlab's report reveals a concerning trend in Pakistan's debt and liabilities. The external debt and liabilities have nearly doubled to $125 billion, and the domestic debt has surged sixfold in nominal terms since 2011.
What is Pakistan's total debt vs GDP? ›
Pakistan's debt-to-GDP ratio is already over 70%, with interest payments on debt estimated to consume 50-60% of government revenues this year.
