The average debt of every Pakistani citizen has become very high. It is worth noting that the current financial situation of the country is due to the habit of successive governments to run their public business by taking loans and borrowings from international lenders.
The average debt per citizen in Pakistan has now reached 295,000 Pakistani rupees. The total debt on the country at present will increase by 8.36 trillion Pakistani rupees to 71.24 trillion Pakistani rupees in 2024. Last year, Pakistan's debt to international money lenders stood at 62.88 trillion Pakistani rupees. Citing a report by Pakistan's Finance Ministry, ARY News said that Pakistan's current debt level is 67.2 per cent higher than the country's gross domestic product (GDP).
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This increase in debt highlights the growing financial challenges the country is currently facing. Domestic debt within Pakistan has currently increased by 8.350 trillion Pakistani rupees, reaching a total of 47.160 trillion Pakistani rupees. On the other hand, Pakistan's external debt now stands at 33.062 trillion Pakistani rupees. Out of this, the net government external debt has reached 21.75 trillion Pakistani rupees.
The same report by ARY News also reveals that Pakistan's debt to the International Monetary Fund (IMF) has increased by PKR 292 billion, taking the total debt to the IMF to PKR 2.33 trillion. Moreover, the biggest chunk of Pakistan's domestic debt comes from federal government bonds, which stands at PKR 32.8 trillion.
The current composition of this debt owed by the country includes Pakistan Investment Bonds (PIBs), which have exceeded 28 trillion PKR, and Sukuk bonds, which total amount to 4.77 trillion PKR. Additionally, prize bonds contribute 345 billion PKR to domestic debt.
Pakistan Finance Ministry document quoted in ARY News report also revealed that Pakistan’s foreign currency debt under domestic debt stands at PKR 374 billion, and New Pakistan Certificates stand at PKR 84 billion.
Such a massive increase in the country's domestic and foreign debt to its lenders underlines the urgent need for economic reforms and management.
