Govt Debt Rs82 Trillion Surge Raises Concerns
Pakistan’s govt debt surge has pushed total debt to Rs82 trillion. This sharp rise reflects growing financial pressure. As a result, experts are raising concerns about sustainability. The government allocated Rs24 trillion for loan repayments. In addition, it approved Rs2.64 trillion as a supplementary grant. However, it later surrendered Rs2.8 trillion. Despite this, total spending still reached Rs25.8 trillion.
Auditors highlighted gaps in financial planning. They stressed the need for stronger checks within the Ministry of Finance. Therefore, better forecasting can help manage repayments more effectively. According to the State Bank, debt increased by Rs5.9 trillion during the June-May period. This means borrowing grew by about Rs16 billion daily. Such rapid growth signals rising dependence on loans.
External Debt Growth Slows
The rupee showed some strength during the last fiscal year. It appreciated to Rs278.4 against the US dollar. As a result, external debt growth remained relatively slow. External federal debt rose from Rs22.5 trillion to Rs23.8 trillion. This increase of Rs1.3 trillion was lower than past trends. A stable currency helped limit the rise. However, short term external debt jumped sharply. It surged from Rs201 billion to Rs2.7 trillion. The central bank linked this to debt reclassification. Still, it did not share detailed reasons.
Domestic Borrowing Continues to Rise
Domestic debt reached Rs58.1 trillion, rising by Rs4.7 trillion in one year. Both long-term and short-term borrowing increased. This trend shows continued reliance on internal sources.
Long-term domestic debt grew from Rs45.2 trillion to Rs47.3 trillion. Meanwhile, short-term debt rose from Rs8.1 trillion to Rs10.7 trillion. This marks a 32% increase despite falling interest rates.
Interest Costs Add Pressure
The rising government debt surge has increased interest payments. The cost now exceeds Rs8 trillion for the current fiscal year. Therefore, managing debt has become more urgent than ever.
