Pakistan’s Public Debt Crosses Rs. 58 Trillion
- 06, June , 2023
Newstoday: In April 2023, the federal government's total public debt stock increased by 34.1 percent on a year-on-year basis, as per the State Bank of Pakistan's monthly data. Over the past year, the debt stock of Pakistan has risen significantly, reaching a total of Rs. 58.599 trillion compared to Rs. 43.705 trillion in April 2022. This represents an increase of nearly 34%, which is a cause for concern. The central government's domestic debt has also increased by 26.4% to Rs. 36.549 trillion, with long-term and short-term public debt rising. Long-term debt public debt increased from Rs. 23.301 trillion to the amount of Rs. 29.195 trillion, and on the other hand, the amount for the short-term debt increased from Rs. 5.578 trillion to Rs. 7.215 trillion. For example, it raised Rs. 6 trillion through Federal Government Bonds, which helped contribute to the total debt stock rising from Rs. 18.985 trillion to Rs. 24.992 trillion. The government has also issued Prize Bonds, which raised Rs. 8 billion in one year. However, it is important to note that the government's reliance on borrowing to fund its operations is not sustainable in the long run, and efforts should be made to reduce the debt burden.
Despite the increase in debt, there have been some positive developments in terms of the composition of the debt. However, the percentage of foreign currency loans shows mounting experinece to Rs. 381 billion from Rs. 8 billion in this year is a matter of concern. In conclusion, while the government's ability to raise funds through bonds and other financial instruments is commendable, it is important to address the underlying issues that are driving the increase in debt. Additionally, steps should be taken to ensure that the debt burden does not become unsustainable and jeopardize the country's long-term financial stability.