Pakistan's public debt sustainable: Finance Ministry

August 29, 2020: The Finance Ministry says Pakistan's public debt is sustainable and capacity to repay remains adequate.

In a statement, the Ministry said the prudent economic policies have resulted in posting the primary balance surplus in February this year after a gap of many years.

The Finance Ministry recognized that the Covid-19 pandemic adversely impacted the economy and slowed down the reforms program of the government.

Resultantly, the Debt to GDP ratio increased due to the sharp decline in growth and the increase in the budget deficit due to Covid-19 related expenditures during the last four months of fiscal year 2019-20.

Referring to the Global Economic Prospects report published by World Bank Group in June this year, the Finance Ministry said Pakistan's economy has shown greater resilience than its peer in South Asia.

The Ministry said the government will bring back the Debt to GDP ratio on a clear downward path over the medium term through increase in revenues and fiscal discipline.

Radio Pakistan