The National Assembly was informed on Monday that Pakistan now owes a total of Rs49,200 billion. According to Finance Minister Ishaq Dar, as of June 30, 2022, the government has a domestic debt of Rs. 31,000 billion and an external debt of Rs. 18,160 billion.
Indicators for the sustainability of the nation’s external debt considerably deteriorated in the previous fiscal year, according to a study from the finance ministry. as a result of the government being increasingly dependent on short-term foreign borrowing and being exposed to risks associated with refinancing and currency devaluation.
For the fiscal year 2021–2022, the public debt indicators relating to debt maturity, currency risks, refinancing risks, and interest rate risks have gotten worse, according to the Annual Debt Review and Public Debt Bulletin.
The Public Debt Management Office and the federal government did a dismal job, according to the study. Within a year, the overall public debt increased unacceptably by Rs9.3 trillion, from Rs39.9 trillion to Rs49.2 trillion.
According to the finance ministry, currency depreciation was to blame for the surge of Rs3.8 trillion. As the dollar fell in value from Rs157.3 in June 2021 to Rs204.4 in June 2022, the exchange rate fell. Budget finance requirements were the cause of the remaining rise.
To read our blog on “Since 2018, the average Pakistani’s debt has increased by 49%,” click here