The federal government has recently unveiled detailed figures concerning Pakistan’s national and foreign debt up to June 2024. This data was presented to the National Assembly by the Ministry of Finance, highlighting significant insights into the country’s financial obligations.
Debt Overview
As of June 2024, Pakistan’s total debt stands at a substantial Rs71 trillion. This total is split between domestic and foreign debt, reflecting the country’s reliance on various financial sources.
Total Debt Breakdown (June 2024):
| Debt Type | Amount (Rs Trillion) | Percentage of Total Debt |
|---|---|---|
| Domestic Debt | 47 | 66% |
| Foreign Debt | 24 | 34% |
| Total | 71 | 100% |
Domestic debt comprises 66% of the total debt, amounting to over Rs47 trillion. This debt is sourced through various means, including government securities, external loans, development partners, and commercial institutions. The remaining 34%, or more than Rs24 trillion, represents foreign debt.
Sources of Domestic Debt
The domestic debt is accumulated from:
- Government Securities: Debt instruments issued by the government to raise funds.
- External Loans: Borrowed funds from foreign entities.
- Development Partners: Loans and aid from international development organizations.
- Commercial Institutions: Loans from banks and other financial institutions.
Repayment Schedule
The Ministry of Finance has outlined a detailed repayment schedule extending from 2024 to 2040. The schedule reflects the government’s plan to manage and service its debt obligations over the coming years.
Annual Debt Repayments:
| Year | Repayment Amount (Rs Trillion) |
|---|---|
| 2024 | 18.7 |
| 2025 | 8.7 |
| 2026 | 7.6 |
| 2027 | 4.3 |
| 2028 | 6.0 |
| 2029 | 8.4 |
| 2030 | 2.4 |
| 2031 | 2.6 |
| 2032 | Over 1.0 |
Details:
- 2024: Rs18.7 trillion in repayments.
- 2025: Rs8.7 trillion.
- 2026: Rs7.6 trillion.
- 2027: Rs4.3 trillion.
- 2028: Rs6 trillion.
- 2029: Rs8.4 trillion.
- 2030: Rs2.4 trillion.
- 2031: Rs2.6 trillion.
- 2032: Over Rs1 trillion.
Implications and Future Outlook
The substantial domestic debt indicates a high reliance on internal financial resources, while the significant foreign debt highlights ongoing international financial commitments. The repayment schedule reveals a plan to address debt obligations in a structured manner over the next 18 years.
The government’s ability to manage and service this debt will be crucial in maintaining financial stability and ensuring sustainable economic growth. Adjustments in fiscal policies, economic performance, and external financial support will play pivotal roles in achieving these repayment goals.
The released data provides a comprehensive view of Pakistan’s debt landscape, offering insights into the country’s financial health and future commitments. The outlined repayment plan underscores the government’s efforts to balance its financial responsibilities while navigating economic challenges.
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