Follow Us on Google News
Karachi: “Pakistan’s debt-to-GDP ratio dropped to 65.7% in July 2021, the lowest since June 2018. The country’s fiscal discipline is improving amid efforts to stabilize its economy, according to a report from media.
Domestic debt to GDP was 43.1%, and external debt was at 22.7%, the information by Arif Habib Limited reports. In the September 2024 quarter, the total debt of the government had declined to PKR 792 billion month on month, or 1%, the State Bank of Pakistan (SBP) states.
The decrease underlines the efforts the government had made to reduce financing requirements due to budget surpluses, high profits in the books at the central bank, and proper management of public expenditure.
The overall debt of the country touched PKR 69.57 trillion by the end of September 2024, which was lesser than what it was in August 2024 with PKR 70.362 trillion.
However, the overall debt has risen by PKR 656 billion during the first quarter of the current fiscal year as of June 2024 end from PKR 68.914 trillion.
These figures come after Pakistan continues its deliberations with the International Monetary Fund on the loan program worth $7 billion. The IMF is more than interested in determining how far Pakistan has gone in filling the external financing gap and increasing tax collection.
SBP data indicates the rise in government’s domestic debt, which had swelled to PKR 47.536 trillion in the first quarter of FY25 from PKR 47.16 trillion at the close of the last fiscal year. Domestics debt also decreased month-on-month to PKR 48.339 trillion at the end of August 2024.
The overall external debt continued to touch PKR 22.034 trillion for July-September FY25 with it being PKR 21.754 trillion at the end of June 2024. As of August 2024, it stood at PKR 22.023 trillion.
