The government has to spend around Rs 3.987 trillion during the fiscal year 2019-20 to retire principal and interest payments on loans from local and foreign sources.
Here is the breakdown of loan repayment and debt servicing:
- Foreign debt servicing – Rs 359.764 billion
- Foreign loan repayment – Rs 1.095 trillion
- Domestic debt servicing – Rs 2.532 trillion
During the outgoing fiscal year 2018-19, the government has spent a huge amount of Rs 2.916 trillion against budgeted Rs 2.222 trillion in Budget 2018/19 for public debt servicing.
Current Public Debt Situation
Pakistan’s public debt and liabilities (domestic and external) have been recorded at a worrisome figure of Rs 35.0954 trillion by end-March 2019 which has more than double of the amount in 2013, when it was recorded at Rs 16.338 trillion.
To retire all its public debts, Pakistan has to arrange 91% of its Gross Domestic Product (GDP). Pakistan’s GDP volume currently stands at Rs 38.558 trillion. Previous governments were warned from falling into such a debt trap but they failed to control their expenditures resulting in the current alarming situation.
This also indicates that Pakistan is violating the Fiscal Responsibility and Debt Limitation act (FRDLA) which calls for limiting debt to GDP ratio below 60 percent.
The country’s population stands at 212.8 million and each Pakistani is indebted with Rs 164,922 which is several times more than what the government spends on health and children education.
Of the total public debt, Pakistan’s current external debt and liabilities (EDL) stand at $105.8 billion at end-March 2019. Out of EDL, external public debt was $74.2 billion. With the depreciation of Pakistani rupee, the debt has increased by manifold. It indicates that if the rupee depreciates by one rupee, it amasses 105.8 billion rupees in debt.
It is worth mentioning that during the last nine months, the government has mobilized $9.2 billion from friendly countries for foreign exchange reserves support. The economic survey says that during the first nine months of the incumbent government, public debt has increased by Rs 3,655 trillion.
Amin can you please write a detailed article (tabular form) on the loan taken, interest on it, and paid back to each country/body (WB, IMF, ADB etc.) till date?
I seriously feel like crying after I see people supporting PMLN and PPP.
Please do take into account the depreciation of PKR against dollar which is also a factor of the increased debt under PTI government
These Crooks & Criminals of PML-N & PPP have literally plunder this country, and still shamelessly trying to make comeback.