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Mettis Global News
Mettis Global News

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Pakistan’s total debt and liabilities grow by 19 percent in FY18

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Pakistan’s total debt and liabilities have soared to Rs 29,861.2 billion during the fiscal year 2017-18, increasing by close to 19% over the year, according to data released by the State Bank of Pakistan on Wednesday.

Rising debt and liabilities are at the forefront of the macroeconomic challenges faced by the country, as the nation grapples with record breaking current account deficits, in addition to the fiscal deficits incurred by the outgoing government due to its inability to meet the gap between expenditures and revenues via tax collection.

As a result, to meet these gaps in the budget and external accounts, as well as to support the country’s dwindling foreign exchange reserves that has pressured the currency to unprecedented rates, the government’s reliance on borrowings has increased over the year.

As a percentage of GDP, the country’s total debt and liabilities have jumped to 86.8%, whereas during the fiscal year before that (2016-17), it stood at 78.6% of the GDP.

Excluding liabilities that are of a short-term nature, the country’s total debt has reached Rs 28,419.2 billion, having grown by 18.2% over the year, while liabilities stand at Rs 1,442 billion, increasing by 36% compared to the Fiscal year 2017.

The country’s domestic debt stood at Rs 16,415.2 billion, while debt raised from abroad stood at Rs 10,935.8 billion, in addition to the Rs 1,068.2 billion owed by Pakistani State Enterprises as of June 30, 2018.

Posted on: 2018-08-29T18:29:00+05:00

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