2024-09-22 22:52:29
Islamabad: The economic crisis in Pakistan is continuously deepening. The average debt owed by each citizen of Pakistan has increased to an astonishingly high level. The average debt per citizen in Pakistan has now reached Rs 2,95,000 (Pak currency). The total outstanding debt on Pakistan is set to increase by Rs 8.36 trillion to Rs 71.24 trillion in 2024. Last year, the total debt of Pakistan to international lenders was Rs 62.88 trillion. This has raised a new challenge, increasing the concerns of the Shahbaz Sharif-led government of Pakistan.
According to ANI, the deteriorating economic condition of Pakistan is due to the governments’ habit of constantly borrowing money and running the economy through loans from international lenders. Citing a report from the Finance Ministry of Pakistan, ARY News said that Pakistan’s current debt level is 67.2 percent more than the country’s gross domestic product (GDP).
Pakistan faces a huge economic challenge
This increase in Pakistan’s debt is currently adding to its growing financial challenges. The domestic debt within Pakistan has currently risen to Rs 8.350 trillion and has reached a total of Rs 47.160 trillion. On the other hand, Pakistan’s foreign debt is now PKR 33.062 trillion. Out of this, the net government foreign debt has reached Rs 21.75 trillion.
The same ARY News report also revealed that Pakistan’s outstanding debt to the International Monetary Fund (IMF) has increased by Rs 292 billion. This has made the total IMF debt Rs 2.33 trillion. Additionally, the largest share of Pakistan’s domestic debt is due to federal government bonds, amounting to Rs 32.8 trillion.
Pakistan’s path ahead becomes difficult
The current structure of Pakistan’s outstanding debt includes Pakistan Investment Bonds (PIBs), which are more than Rs 28 trillion. Of this, Sukuk bonds total Rs 4.77 trillion. In addition, prize bonds contribute Rs 345 billion to the domestic debt. Pakistan’s Finance Ministry document shows that within the domestic debt, Pakistan’s foreign currency debt is Rs 374 billion and certificates account for Rs 84 billion.