Debt Servicing to Swallow 42% of Total Budget

Pakistan will spend approximately Rs. 3.950 trillion on debt servicing, including interest payments and retiring its principal amounts, during the next financial year 2022–23, which is 42 percent of the total budget outlay of Rs. 9.5 trillion.

The government has earmarked Rs. 3.950 trillion in the budget for 2022–23 against the Rs. 3.059 trillion for the outgoing fiscal year, which was later revised to Rs. 3.143 trillion.

During the budget year 2022–23 on foreign debt servicing, the country will spend Rs. 510.972 billion against Rs. 302.506 billion allocated for the current fiscal year, which was later revised to Rs. 373.183 billion.

On domestic debt servicing, the government will spend Rs. 3.439 trillion in the budget year 2022–23 against Rs. 2.757 trillion in the financial year 2021–22, which was later revised to Rs. 2.770 trillion.

Pakistan’s total public debt was recorded at Rs. 44,366 billion at the end of March 2022, registering an increase of Rs. 4,500 billion during the first nine months of the current fiscal year.