July 8, 2021
2 mins read

8% surge in Pak public debt in 11 months

The central bank data on Monday (July 5) revealed that Pakistan’s public debt had increased by Rs 2.89 trillion or 8.23 per cent in 11 months of the fiscal year…reports Asian Lite News

Pakistan’s public debt has increased by over eight per cent in 11 months of the fiscal year ended in June due to increased government borrowing to meet the spending requirements during the COVID-19 pandemic according to government data.

The central bank data on Monday (July 5) revealed that Pakistan’s public debt had increased by Rs 2.89 trillion or 8.23 per cent in 11 months of the fiscal year ended June 30, reported The News International.

The central government’s debt stood at Rs 37.997 trillion at the end of May 2021. The debt amounted to Rs 35.107 trillion in the period ended June 2020.

The debt increased by 10.17 per cent year-on-year in May. It was Rs 34.489 trillion in the period ended May 31, 2020.

Fiscal Responsibility and Debt Limitation (FRDL) Act 2005 defines “Total Public Debt” as debt owed by the government (including federal government and provincial governments) serviced out of consolidated fund and debts owed to the International Monetary Fund.

Rise in public debt is largely driven by the government’s domestic borrowing that has increased 11.95 per cent to Rs 26.065 trillion. Foreign debt was almost flat at Rs 11.931 trillion.

SBP’s data showed that government securities such as the market treasury bills (MTBs), Pakistan Investment Bonds (PIBs), and Ijara Sukuk (Islamic bonds) remained the preferred choice of borrowing within domestic debt. The major portion of borrowing from domestic sources was carried out through medium- to long-term debt instruments.

Pakistan Prime Minister Imran Khan

ALSO READ: Pakistan Again Betrays Afghans and the World

Imran Khan-led Pakistan government has allocated Rs 900 billion for the federal public sector development programme in fiscal year of 2022, 38 per cent up from last year. There is a need to contain the budget deficit, targeted at Rs 3.420 trillion or 6.3 per cent of GDP this fiscal year, compared with revised estimate of Rs 3.195 trillion or 7 per cent for fiscal year 2021.

Analysts predict the budget deficit to be in the range of 7.0-7.5 per cent in fiscal year 2022, where part of the shortfall would be covered by cut in expenditures, both current and development. The primary deficit is expected to be in the range of 1.0-1.5 per cent.

The Pakistan outlet claims in its official report that increased level of external inflows from multilateral and bilateral development partners is indicative of their confidence in development priorities and policies of the government, including implementation of reforms in the priority areas of fiscal and debt management, energy sector and ease of doing business. (ANI)

ALSO READ: Taliban can’t make govt surrender in next 100 years: Ghani

Previous Story

Taliban can’t make govt surrender in next 100 years: Ghani

Next Story

Pakistan looks for alternate pipeline instead of PSGP

Latest from -Top News

Visa Interview Pause Nearing End, Says US

India is the source country for the largest group of international students in the US and Bruce’s comments will be closely followed there….reports Asian Lite News The United States said the pause

No Talks Till Terror Ends: India to Pakistan

The MEA’s strong response came at a time when Pakistan, pushed on the backfoot by India’s decisive Operation Sindoor, has suddenly started talking about its intent on having peace talks with India….reports

BNP ramps up poll demand

Chief Adviser Yunus had earlier promised elections in December 2025, but the timeline has since been pushed back first to February 2026 and then to June 2026, fuelling suspicion and dissatisfaction among

Saudi backs India’s strategic outreach

In a series of engagements, the Indian delegation met Saudi Arabia’s Minister of State Adel Al-Jubeir and other senior officials. A high-profile Indian all-party parliamentary delegation, led by BJP MP Baijayant Jay

India clears stealth fighter project

New execution model paves way for private sector involvement in India’s ambitious stealth aircraft programme; Army showcases next-gen drone warfare systems. In a landmark decision bolstering India’s defence self-reliance, Defence Minister Rajnath
Go toTop

Don't Miss

Pakistan Accuses US of Double Standards in Human Rights Reporting

This year’s report is once again conspicuous by its lack

PTI dissidents stand firm on position, reject pardon deal

The disgruntled lawmakers said that he put up all issues