Karachi [Pakistan], October 9 (ANI): Pakistan government’s debt reached a record high of Pakistani currency (PKR) 70.36 trillion, a staggering figure that’s sparking concerns about the country’s economic stability, ARY News reported.
According to ARY News, federal debt increased by PKR 1,448 billion in just the first two months of the current fiscal year, with PKR 739 billion added in August alone, as per data released by the State Bank of Pakistan (SBP).
The federal government’s debt rose by a staggering PKR 6,392 billion between September 2023 and August 2024. As of August 2024, domestic debt accounted for PKR 48,339 billion, while external debt stood at PKR 22,023 billion.
According to ARY News, this significant rise in government borrowing has raised concerns about the country’s fiscal health and debt sustainability as Pakistan continues to grapple with economic challenges.
Recently, the IMF approved a USD 7 billion new bailout package for Pakistan on September 26, authorising the immediate release of the first loan tranche of less than USD 1.1 billion to reinforce the cash-strapped country’s efforts to address the ongoing economic crisis, the ARY News reported.
The new USD 7 billion loan is Pakistan‘s 25th IMF program since independence in 1947–the highest number of any country.
Pakistan last year came to the brink of default as the economy shrivelled amid political chaos following catastrophic 2022 monsoon floods and decades of mismanagement, as well as a global economic downturn.
The government was saved by last-minute loans from friendly countries as well as an IMF rescue package, but its finances remain in dire straits, with high inflation and staggering public debts, as per Dawn.
“This program should be considered the last program,” the Pakistan PM said in July when the loan deal was agreed.
According to Dawn, the finance ministry wrangled for months with IMF officials to unlock the new loan. (ANI)
