The country will spend around Rs 9.775 trillion on debt servicing including interest payments and retiring its principal amounts during the next financial year 2024-25 which is 51.8 percent of the total budget outlay of Rs 18.877 trillion.
The government has earmarked Rs. 9.775 trillion in the budget 2024-25 against Rs. 7.302 trillion for the current fiscal year which was later revised to Rs. 8.251 trillion.
During the budget year 2024-25 on foreign debt servicing, the country will spend Rs. 1.038 trillion against Rs. 872.219 billion allocated for the current fiscal year which was later revised to Rs. 1.039 trillion.
On domestic debt servicing, the government will spend Rs. 8.736 trillion in 2024-25 against Rs. 6.430 trillion in 2023-24 which was later revised to Rs. 7.211 trillion.
Pakistan’s total public debt was recorded at Rs. 67.525 trillion at the end of March 2024, registering an increase of Rs. 4.644 trillion during the first nine months of the current fiscal year, as it was Rs. 62.881 trillion on June 30, 2023
This is the real reason for inflation, govt keep borrowing for domestic sources and spends it on luxuries and wastes much due to bad decisions. Ultimately public has to bear high taxes due to the poor governance.