Pakistan’s total debt, liabilities surge to Rs77.94tr in 1QFY24

November 10, 2023 (MLN): Pakistan’s total debt and liabilities soared to Rs77.94 trillion in 1QFY24, marking a rise of 25.83% YoY from Rs61.94tr in 1QFY23, according to data from the State Bank of Pakistan (SBP) released on Friday.

The breakup for the total debt and liabilities shows that total debt stood at Rs74.868tr and liabilities stood at Rs4.698tr during the review period.

Under the country’s total debt, external debt which includes debt from IMF, intercompany external debt from direct investors abroad, government and non-governmental external debt, jumped by 26.01% YoY to Rs33.472tr compared to Rs26.563tr in 1QFY23.

It is important to note that the country’s debt from IMF stood at Rs109.5bn, which surged by 2.36x YoY in 1QFY24.

The data released by the central bank further shows that the total liabilities including external and domestic rose to Rs4.698tr, expanding by 31.72% YoY compared to Rs3.567tr in 1QFY23.

The last element in the breakup is the consolidated adjustment amounting to Rs1.629tr in 1QFY24.

Total Debt and Liabilities Servicing

The servicing of total debt and liabilities surged to Rs2.165tr in 1QFY24, reflecting an increase of 41.52% YoY compared to Rs1.53tr in the same period last year.

Out of the total servicing of debt and liabilities, the predominant portion, amounting to Rs1.563tr, comprised interest payments on external debt, indicating a YoY increase of 58.06%.

The breakup further shows that the remaining amount comprises Rs553.7bn as the principal payment of external finances and Rs48bn as interest payment on liabilities.

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