- Public debt increases by 13% during the 2010 financial year, reaching 71.2 Billions of rupees.
- Govt is missing the debt reduction objectives under FRDLA.
- The external debt reached $ 88.7 billion in September 2024.
Islamabad: Despite progress in reducing the debt trajectory, the government has not achieved the overall objectives of reducing public debt described in the tax on tax liability and the limitation of debt, which has been approved by parliament, The news reported.
Although the government has reached its commitment to Parliament in reducing public debt, mainly due to budgetary imbalances, it remains to be seen if the Parliament will assert its authority by raising questions to determine the reasons for this perpetual failure to achieve Its limits envisaged to compensate for the reduction of the end of the debt burden.
The debt report of the Ministry of Finance shows that the country’s total public debt amounted to 71.2 rumors of rupees during the 201024 fiscal year against 62.8 billions of rupees during the 2010s, increasing of 8.34 rollers of rupees during a period of one year.
During the 20124 fiscal year, total public debt increased by 13% to be 71.24 billions of rupees in June 2024, the interior debt of which was 47.16 billions of rupees and external debt in rupees In terms of RS24.08 Billion.
During the first quarter of 201025, there was a marginal increase of 1.3% of the public debt to reach 72.13 billions of rupees. In terms of GDP debt ratio, total public debt showed a decrease of 7.7%, reaching 67.2% at the end of June 2024 against 74.9% of the gross domestic product (GDP) during the ‘Exercise 2010.
TOTAL EXTERNAL DEBT Continue to Increase During Q1-FY2025, to stand at $ 88.7 Billion as of September 2024. In Terms of External Debt Composition, More Than Half of Pakistan’s External Debt (56% AS of September 2024) is from Multilateral Development Financial Development Institutions, including the International Monetary Fund (IMF).
The second major source of external debt comes from bilateral partners, including the Paris Club, which holds around 28% of the external debt. 14% of the external debt comes from commercial sources, 8% of international bond emissions and 6% of commercial banks.
During the year 2010, the stock of external debt (in USD) experienced a net increase of 3% in annual sliding, while the share of external debt in total public debt rose from 38% (June 2023) at 34% (June 2024).
Although exposure to external debt is always within the maximum limit of 40%, as provided for in the medium -term debt strategy (MTDS), it remains sensitive to the movement of exchange rates.
According to the declaration of debt policy prepared by the Ministry of Finance for the submission to Parliament, article 3 of the Tax Responsibility and Debt Limitation Act (FRDLA) relates to the directors of healthy management and management of Debt, in which the federal government must take measures to reduce the budget deficit (excluding subsidies) and the ratio of total public debt to GDP and maintaining it within certain prudent limits, which have been defined as a debt ratio / GDP, 60% of which were stipulated until the 2017-18 financial year, with a reduction of 0.5% each year until 2022-23 and 0.75% each year until 2032-33 to reduce the ratio at 50% and maintain it later at 50% or less.
In September 2024, total public debt was 67.2% compared to the objective envisaged under the FRDLA of 61%, so it missed.