Pakistan’s total debt and liabilities (TDL) watered up to perspiring $242.8 billion at the end of December 2017 – booking an increase of 47.3% or $78.0 billion since June 2013 when the PMLN’s government took up the baton.
The increase in local currency is more vexing – 64.1% or Rs. 10.5 trillion – to Rs. 26.8 trillion from Rs. 16.3 trillion in June 2013. As a result, every Pakistani owes Rs. 129,000/- and each Pakistani household is indebted with Rs. 830,000.
Total debt and liabilities of the economy-torn country now makes 74.7% of gross domestic product (GDP) – up from 68.6% in June 2013, the figures released by State Bank of Pakistan (SBP) on Friday showed.
In four and half years, federal and provincial governments and public sector enterprises (PSEs) borrowed Rs. 6.7 trillion ($50bn) from banks to pole an increase of 65.0% in domestic debt and liabilities (DDL) – to Rs. 17.0 trillion ($153.9bn) from Rs. 10.3 trillion ($103.9bn) in June 2013.
Similarly, external debt and liabilities (EDL) jetted 46.0% or $28.0 billion at an average of more than $6.0 billion annually – to $88.9 billion from $60.9 billion in June 2013. Central government’s EDL for FY2017 remained $14.4 billion.
First half (July to December) of FY2018 being the basest during which the total external borrowings and obligations grew sorely by $5.8 billion and is likely to double for the twelve-month period ending June 30.
The sharp rise in EDL also beats the prediction of the incumbent Punjab Finance Minister Dr. Ayesha Ghaus Pasha’s husband and Former Finance Minister Dr. Hafeez Pasha that Pakistan’s external debt and liabilities will sail through $90 billion by June 2019.
In a latest development, the government also confessed that the country has deteriorated its external debt paying capacity and also growth of external debt in proportion to the foreign exchange reserves has considerably increased.
External debt servicing combined with always-mounting imports is one of the largest harm to the bleeding national economy. Since June 2013, Pakistan has spent $29.5 billion on account of external debt’s principal and debt servicing.
The FY2017 recorded the highest ever external debt servicing year – repaying $8.1 billion, $6.5 billion in principal loans reimbursement and $1.6 billion in interest payment. In 6M-FY2018, a total of $3.6 has already been incurred on the same account.
Sharif-controlled government continues to camouflage its inefficiency and failure to discharge its managerial responsibilities by blaming Middle Eastern turmoil and capital investments in CPEC-linked projects for country’s flagging economic conditions but is inaudible on torpid exports, rising current account deficit, and dropping rupee value.
As powerful former finance minister Ishaq Dar manages to survive in a western hospital over JIT syndrome, Pakistan’s economy however drastically needs some candid financial clinicians to get rid of ‘intensive care unit’.
The FY2017 recorded the highest ever external debt servicing year – repaying $8.1 billion, $6.5 billion in principal loans reimbursement and $1.6 billion in interest payment. In 6M-FY2018, a total of $3.6 has already been incurred on the same account.
Sharif-controlled government continues to camouflage its inefficiency and failure to discharge its managerial responsibilities by blaming Middle Eastern turmoil and capital investments in CPEC-linked projects for country’s flagging economic conditions but is inaudible on torpid exports, rising current account deficit, and dropping rupee value.
As powerful former finance minister Ishaq Dar manages to survive in a western hospital over JIT syndrome, Pakistan’s economy however drastically needs some candid financial clinicians to get rid of ‘intensive care unit’.