It is concerning news that Pakistan’s overall debt and liabilities increased to Rs. 62.4 trillion following the first quarter (July-September) of the current fiscal year, or FY2023, according to a report released on Wednesday by the State Bank of Pakistan (SBP).
The total debt and liabilities climbed by 23.7% this year compared to the same period last year, according to the central bank’s preliminary report.
The debt counter increased by Rs. 2.76 trillion during the first quarter of FY23, going from Rs. 59.7 trillion to Rs. 62.46 trillion.
The percentage of Pakistan’s overall debt and obligations in relation to the size of the nation’s GDP was not provided by the central bank, nevertheless.
The increase in Pakistan’s external dues, which increased by Rs. 6.8 trillion or 35% from the previous year to Rs. 26.5 trillion, is what caused the country’s debt to increase during the time under review.
The federal government’s external dues climbed to Rs. 18 trillion in a year, excluding the IMF loans.
The weakening of the rupee and the nation’s efforts to bolster its foreign currency reserves through borrowing were the main causes of the net increase in external debt, which was 1.3 trillion rupees.
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