Pakistan’s overall debt and liabilities reached a startling Rs84.91 trillion in fiscal year 2024, up 10.97% from the previous year’s record of Rs76.51 trillion, according to the most recent statistics from the State Bank of Pakistan (SBP) issued on Wednesday.
Despite this considerable increase, debt and liabilities as a proportion of GDP remained at 80.1%, down from 91.2% in FY23. This decrease is mostly due to the high base effect from the prior era.
The debt statistics shows that Pakistan’s overall debt was Rs81.93 trillion, with liabilities of Rs4.64 trillion. The debt is divided into three categories: domestic debt, public sector enterprises (PSE) debt, and overseas debt, which totaled Rs47.16 trillion, Rs1.71 trillion, and Rs33.06 trillion, respectively.
External debt, which includes obligations to the International Monetary Fund (IMF), intercompany external debt from foreign direct investors, and government and non-governmental external debt, increased by 0.12% over the previous year, from Rs33.02 trillion to Rs33.06 trillion.
Notably, Pakistan’s IMF debt reached Rs2.33 trillion in FY24, a 14.3% rise from the previous year.
According to the central bank’s figures, the country’s overall liabilities, both foreign and domestic, increased by 1.22% during the same period, reaching Rs4.64 trillion. Furthermore, consolidated adjustments for on-lending to the Government of Pakistan (GOP) were recorded at Rs1.67 billion in FY24.
The cost of servicing Pakistan’s overall debt and obligations rose to Rs11.9 trillion in FY24, a 21.26% rise from Rs9.82 trillion the previous year. Debt servicing accounted for 11.2% of GDP in fiscal year 24.
A large percentage of this money, Rs8.55 trillion, was set aside for debt interest payments, highlighting the country’s financial hardship in meeting its obligations.
As Pakistan grapples with these mounting financial pressures, the rising debt and liabilities pose a significant challenge for the country’s economic stability and growth. The government’s ability to manage and service this debt will be crucial in navigating the nation through these turbulent economic times.
