Pakistan’s Total Debt: What it Means for You as a Citizen
Pakistan is grappling with a substantial debt burden, as per data recently disclosed by the State Bank of Pakistan (SBP). The total debt, both internal and external, stands at a staggering Rs 64 trillion. This translates to approximately Rs250,000 owed by each Pakistani citizen.
The SBP’s report, released recently, sheds light on the loans acquired by the federal government. In August 2023, the federal government obtained a fresh loan amounting to Rs2.218 trillion. Consequently, the domestic debt has surged by 24%, reaching a total of Rs39.792 trillion. Simultaneously, the country’s external debt load has risen to Rs24.175 trillion, marking a 39% increase.
A concerning trend emerges when examining the numbers further. During the initial two months of the current fiscal year, the cost of servicing the federal government’s debt spiked by 44%, amounting to Rs1.534 trillion. This steep increase in debt servicing costs poses a significant threat to the nation’s economy.
| Description | Amount (in Rs Trillion) |
|---|---|
| Total Debt (Internal + External) | 64 |
| Total Debt per Pakistani Citizen | 250,000 |
| Fresh Loan Obtained by Federal Government (Aug 2023) | 2.218 |
| Domestic Debt (as of Aug 2023) | 39.792 |
| Increase in Domestic Debt (Aug 2023) | 24% |
| External Debt (as of Aug 2023) | 24.175 |
| Increase in External Debt (Aug 2023) | 39% |
| Increase in Debt Servicing Costs (First 2 Months FY) | 44% |
| Debt Servicing Costs (First 2 Months FY) | 1.534 |
The above table summarizes the key financial figures related to Pakistan’s debt situation.
The escalating debt situation places immense pressure on the government’s budget. It becomes increasingly challenging to allocate funds for critical sectors such as healthcare and education, as a substantial portion of the budget is directed towards servicing the debt. This predicament underscores the urgent need for measures to address and alleviate Pakistan’s growing debt crisis.
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