National debt of Pakistan

The national debt of Pakistan (Urdu: قومی قرضہ جاتِ پاکستان‎), or simply Pakistani debt, is the total public debt, or unpaid borrowed funds carried by the Government of Pakistan, which includes measurement as the face value of the currently outstanding treasury bills (T-bills) that have been issued by the federal government.

The terms 'budget deficit' and 'national surplus' usually refer to the federal government budget balance from year to year, not the cumulative amount of debt. A deficit year increases the debt, while a surplus year decreases the debt as more money is received than spent.

History

In 2008 when Pakistan Peoples Party (PPP) had won the election, Pakistan's debt was ₨6,500 billion which increased by 135% in the next five years of PPP tenure, and became ₨15,096 billion in 2013. Majority of this increase in debt was in domestic debt in which external debt of Pakistan increased by 22 percent, from US$42.8 billion in 2008 to US$52.4 billion in 2013. PPP government was dependent on domestic and International lending to meet the needs of the government expenditures. Total debt increased to 64 percent of the GDP but external debt as a percentage of GDP decreased from 29.5 percent to 23.4 percent.

After 2013 Pakistani general election, Nawaz Sharif came to power and his government got loan from the International Monetary Fund. During their rule of five years, Pakistan's external debt increased from US$52.4 billion to US$75.3 billion, an increase of 26.80 percent, mainly due to import and export differences sukuk bonds and China-Pakistan Economic Corridor.

Current debt

As of December 2020, Total Public Debt and Liabilities of Pakistan is estimated to be about ₨22.978 trillion/US$161 billion which is 98.7 percent of gross domestic product (GDP) of Pakistan. About ₨24.309 trillion is owed by the government to domestic creditors, and about ₨2.3 trillion is owed by Public Sector Enterprises (PSEs).

Similarly, as of December 2020, external Debt of Pakistan is now around US$115.7 billion. Pakistan owes US$11.3 billion to Paris Club, US$33.1 billion to multilateral donors, US$7.4 billion to International Monetary Fund, and US$12 billion to international bonds such as Eurobond, and sukuk. About 15% of the external debt which is estimated around US$17.1 billion (6.15% of GDP) is owed to China due to China-Pakistan Economic Corridor.



This page was last updated at 2021-11-10 23:55 UTC. Update now. View original page.

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