Pakistan total debt, international & national has now reached to Rs21.8 trillion. State Bank of Pakistan (SBP) has released this data, which amount the debt taken by Pakistan till November 2017.
The debt has increased sharply during the fiscal year 2017-2018 first five months.
The expenditures by the government of Pakistan have increased, they have increased fiscal deficit and the total debt has risen up. From July to November fiscal year 2017-2018 the debt increased by 5%. By end of November 2017, the debt increased to 21.8 trillion. In these statistics, the loan taken from IMF have not been added by State Bank of Pakistan.
The domestic debt in first five months of the current fiscal year increased by 6% while the external debt increased by 3%. Because of Rs 917 billion increase in these months, the domestic debt rose up to Rs15,766 trillion. In June 2017 the debt was Rs14.849 trillion
Total domestic debt is a combination of short-term debt, permeant loans, floating debt foreign currency loans and unfunded loans. Long-term debt amounted to Rs7.823 trillion while short-term debt amounted to Rs7.943 trillion.
External debt was Rs5.918 trillion in June 2017. By November 2017 it went up to Rs6.094 trillion. It has surged up by Rs175.4 billion. In this debt, both short term and long term loans are included that are Rs108.3 billion and Rs5.986 trillion respectively.
Recently Rana State Minister for Finance Muhammad Afzal informed that Pakistan needs to pay back $6 billion to the international creditors in the period of next six months.
With the devaluation of rupee, the rise in fuel prices, rise in car prices etc, where is Pakistan’s economy going? CPEC is truly a game changer for Pakistan but did it really improved Pakistan’s economy or worsened it? So much debt, Rs 21.8 trillion, the question is how will it be re-payed and who will repay it?