KARACHI: Pakistan’s public debt crosses dangerous levels and reaches Rs 34trillion mark.
Public debt rose by Rs2.3 trillion in the first nine months of the currentfiscal year of 2019/20 as the government’s budget financing needs continueto increase with revenue constraints, the central bank’s data showed onTuesday.
The State Bank of Pakistan’s (SBP) data showed that public debt stood atRs34.1 trillion at the end of March 2020, up by 7.4% from Rs31.7 trillionin June-end of 2019.
The government adhered to its commitment of zero borrowings from thecentral bank and mobilised funds through commercial banks and nationalsavings scheme to finance the budget deficit.
Weaker tax revenues and higher interest payments incurred by the governmentamid tight monetary policy also led to a surge in domestic debt in theperiod under review.
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The domestic debt was Rs22.4 trillion at the end of March, 8.422% up fromRs20.731 trillion at end-June last year. Foreign debt rose 5.45% toRs11.658 trillion, according to SBP.
External debt increased in dollar terms on account of fresh borrowing frommultilateral and commercial sources and a fall in the rupee valuecontributed towards a higher foreign debt.
