Islamabad: On Monday, the National Assembly was told that the total volume of debts on Pakistan has reached 49 thousand 200 billion rupees.
Finance Minister Ishaq Dar said that on June 30, 2022, the domestic debt of the country was 31 thousand billion rupees, while the volume of external debt was 18 thousand 160 billion rupees.
Earlier, a finance ministry report revealed that the country’s external debt sustainability indicators worsened in the last fiscal year due to higher reliance on short-term foreign loans and refinancing to the government and the appreciation of the rupee. I faced risks related to scarcity.
According to the Annual Debt Review and Public Debt Bulletin for the fiscal year 2021-22, public debt indicators on debt maturity, currency risks, refinancing risks and interest rate risks had worsened.
The report reflected poorly on the performance of the Public Debt Management Office and the federal government. Total public debt increased from Rs 39.9 trillion to Rs 49.2 trillion within a year, an unsustainable increase of Rs 9.3 trillion.
The increase worth Rs 3.8 trillion was due to currency depreciation as the exchange rate fell from Rs 157.3 per dollar in June 2021 to Rs 204.4 in June 2022, the finance ministry said. The remaining increase was due to the budget. Financing requirements.
According to the report, the share of external debt in total public debt increased from 34 per cent in 2020-21 to 37 per cent in the last financial year. It was moving towards the maximum limit of 40%.
