The Islamabad Ministry of Finance says that Pakistan’s debt increased by 28% to 11.3 trillion rupees from June 2021 to September 2022.
According to the details, the policy report on national debt under the Government’s Financial Responsibility and Debt Limit Act was submitted to Parliament.
In which it is stated that by June 2021, Pakistan’s debt has increased from 71.5% to 73.5% of GDP and every Pakistani has become indebted to 1 lakh 75 thousand 625 rupees.
The report said that from June 2021 to September 2022, the debt owed by each Pakistani increased by 50 thousand rupees or 28 percent and in September 2022, each Pakistani became indebted to 2 lakh 25 thousand 247 rupees.
According to the Finance Ministry, the debt ratio increased by 2 percent of GDP in FY 2022. According to the Debt Limit Act, the government had to bring the debt level to 58 percent of GDP in FY 2022.
According to the report, domestic debt was 74.7 percent of GDP before Corona, in June 2021, Pakistan’s internal debt was 26.26 trillion rupees, while in June 2022, Pakistan’s internal debt increased to 31.04 trillion rupees.
The Ministry of Finance said that the foreign debt increased from 13.6 trillion rupees in June 2021 to 18.1 trillion rupees in June 2022, while Pakistan’s external debt increased to 19.73 trillion rupees in September 2022.
The domestic debt increased by Rs 3.76 trillion due to depreciation of the rupee and the debt increased by Rs 3.18 trillion due to increase in interest rates while the domestic debt increased by Rs 2.43 trillion due to primary fiscal deficit.
The report said that in June 2022, Pakistan’s external debt increased by 2.4 billion dollars to 88.8 billion dollars, and in the fiscal year 2021-22, 16.2 billion dollars were borrowed and 11 billion dollars were returned.