KARACHI: Pakistan’s total debt and liabilities (domestic and external) continued to grow and reached the historic level of Rs 59.6 trillion by the end of last fiscal year (FY22), mainly due to fresh borrowing from domestic and external resources.
The State Bank of Pakistan (SBP) Monday reported that the country’s total debt and liabilities stocks rose by 25 percent during the last fiscal year. The country’s domestic and external debt and liabilities rose to a new peak of Rs 59.696 trillion in June 2022 compared to Rs 47.844 trillion in June 2021, depicting an increase of Rs 11.853 trillion.
Economists said that continued and massive borrowing from domestic and external resources for financing the fiscal and current account deficit increased the country’s debt burden. They said that the federal government is facing a cash crisis and looking for further borrowing from international bilateral and financial institutions.
According to the SBP, total debt and liabilities as percent of GDP increased from 85.7 percent in June 2021 to 89.2 percent in FY22. The country’s debt and liabilities stocks comprise of government domestic debt, government external debt, debt from the IMF, external liabilities, private sector external debt, Public Sector Enterprises (PSEs) external debt, PSEs domestic debt, commodity operations and intercompany external debt from direct investors abroad.
The country’s total debt stocks increased by Rs 11.2 trillion to Rs 56.763 trillion at the end of FY22 up from Rs 45.562 trillion at the end of FY21. Similarly, liabilities escalated from Rs 2.282 trillion in FY21 to Rs 3.409 trillion at the end of the last fiscal year. During the period under review, the upward trend was also seen in the domestic as well as external debt stocks.
The government’s domestic debt posted 19 percent growth to reach Rs 31.036 trillion in June 2022 compared to Rs 26.265 trillion in June 2021. The government’s external debt mounted by Rs 35 percent or Rs 4.307 trillion to Rs 16.746 trillion at the end of FY22 versus Rs 12.439 trillion at the end of FY21.
The IMF loans rose to Rs 1.409 trillion as of June 30, 2022 compared to Rs 1.162 trillion in June 2021, showing an increase of Rs 247 billion.
Copyright Business Recorder, 2022