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KARACHI: It is not just the record floods that have been drowning the country, national debt is soaring at record rate as the finance minister Miftah Ismail has accumulated debt of Rs7400 billion in just four-month of government.
As per details, Arif Habib Limited, government debt soared to Rs.50.5 trillion as of July 2022 compared with Rs.47.8 trillion in Jun in 2022. The debt has been increased by 5.7 percent in the financial year to-date. On year-on-year basis (YoY), it grew by Rs10.6 trillion, showing an increase of 26.7 percent as compared to last FY.
Central government debt increased to PKR 50.5trn (+5.7% FYTD) as of Jul’22 compared with PKR 47.8trn in Jun’22. On YoY basis it went up by PKR 10.6trn (+26.7% YoY).@GovtofPakistan @FBRSpokesperson @StateBank_Pak #SBP #Pakistan #Economy #AHL pic.twitter.com/8CtRvkNmbu
— Arif Habib Limited (@ArifHabibLtd) September 6, 2022
The coalition government took massive loans amounting to Rs.6700 billion for 3 months period from April to June in last FY, marking the highest quarterly increase of loans in the past 3 years.
External debt, which increased by 48.5 percent YoY from Rs.13 trillion in July 21 to Rs.19.4 trillion in July 22, has made a significant contribution. From Rs.16.7 trillion in June to Rs.19.3 trillion on a month-over-month basis, it climbed by 15.7%.
حکومت کے اپنے اعدادوشمار کے مطابق مفتاح اسماعیل پاکستان کا سب سے زیادہ قرض لینے والا وزیر خزانہ کا اعزاز بھی حاصل کر لیا۰ صرف چار ماہ کے قلیل عرصے میں 7,400 ارب کا قرض لیا جو پاکستان کا مجموعی طور پر 18 فیصد بنتا ہے۰ کچھ سیکھیں امپورٹڈ حکومت سے ایسے بچاتے ہیں ملک دیوالیہ سے۰ https://t.co/bZ1p2Vi3k1
— Muzzammil Aslam (@MuzzammilAslam3) September 6, 2022
The national economy has been undermined by a series of shocks. The cost of debt servicing has significantly increased as a direct result of the growing debt load. At the conclusion of the fiscal year 2021, total debt servicing was Rs4.6 trillion; by the end of the fiscal year 2022, it was Rs5.5 trillion.
Domestic debt held by the central government rose by 16 percent on YoY basis, from Rs26.8 trillion in July 21 to Rs31.1 trillion in July 22. On a monthly basis, it increased by 0.3% from 31 trillion in June to 31.13 trillion in rupees on July 22.
Foreign currency loans increased by 46.5 percent on a year-over-year basis from Rs7 billion in July 21 to Rs10 billion in July 22. Foreign currency loans climbed on a month-over-month basis from Rs9 billion on June 22 to Rs10 billion on July 22 by 16.7%.
