Pakistan’s external debt rose by 17 percent from June to November to Rs9.12 trillion


According to the recent figures released by State Bank of Pakistan (SBP) on Monday, Pakistan’s total debt stood at Rs26 trillion which was recorded in November 2018.

Out of the total debt, Pakistan owe local banks and financial institutions Rs17 trillion and its external debt was recorded at Rs9.12 trillion.

Pakistan’s total debt surged by 20 percent after June, when it was recorded 9 percent. The domestic debt also increased by 10 percent which was recorded at 6 percent in June.

The external debt surged by 50 percent overall and 17 percent from June onwards reaching Rs9.12 trillion, in dollars the external debt was up by 13 percent and 1percent since June.

This becomes very important to understand when it comes to calculating debt in Rupee, as Rupee devalued significantly against dollar the external and internal debt grew significantly, however, the actual dollar calculation is quite under control, only 1 percent increase since June.

According to the data the Federal government debt grew to Rs2.24 trillion during the first five months of the current fiscal year 2018-19, this was all due to 2 main factors including shortfall in revenues and plunge in Rupee value.

Moreover, the federal government’s debt from State Bank of Pakistan surged by 87 percent during these five months of FY18-19, the debt reached a record high of Rs6.73 trillion by the end of November 2018. The total debt of Federal government rose to Rs26.5 trillion after adding a net total of Rs2.24 trillion during the first five months of the current fiscal year; this was up by 9.2 percent as compared to the previous corresponding period of July-November during FY17-18.

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