Pakistan’s total public debt stands at Rs42.7t

Pakistan’s total public debt stands at Rs42.7t

ISLAMABAD (INP): Pakistan’s total public debt till December 2021 stood at Rs42,745 billion, including Rs26,745 billion domestic debt and Rs15,950 billion external liabilities, according to a report released by the finance ministry.
The country’s total public debt stood at Rs39,859 billion in June 2021, going up from Rs36,399 billion in June 2020, the data showed, reports WealthPK.
According to the ministry of finance sources and the data, Pakistan’s public debt was Rs32,708 billion in June 2019.
In terms of percentage, total domestic debt-to-GDP ratio was 55.1% in June 2021, while it was 56% in June 2020 and 54.4% in June 2019.
Likewise, the country’s external debt-to-GDP ratio was 28.5% in June 2021, while it was 31.6% in June 2020 and 31.4% in June 2019, the finance ministry sources and the data revealed.
In dollar terms, Pakistan’s domestic debt stood at $167 billion in June 2021, while it was recorded at $138 billion in June 2020 and $127 billion in June 2019. Pakistan’s total public debt in June 2021 was recorded at $253 billion, $216 billion in June 2020 and $200 billion in June 2019.
Meanwhile, economic experts believed the government should slash its non-development expenditure, boost exports, reduce imports and generate own sources of income to bring down the debt. They also suggested the government focus on further improving remittances’ flow from overseas Pakistanis and avoiding taking expensive loans to stabilise its foreign exchange reserves.
They said the government should document the economy and bring tax evaders into the tax net by improving the performance of the Federal Bureau of Revenue.
The economic experts were of the view that the government should borrow on soft-terms only for development purposes.
They maintained that the government should try to become less dependent on International Monetary Fund and explore other sources for generating funds.
They also recommended the government create a more conducive environment for attracting foreign direct investment. They called for tapping Pakistan’s rich hydel and mineral resources to generate more financial resources for the country and reducing dependence on expensive foreign loans.
The economic experts also asked the government to promote and develop tourism sector in order to boost economy, besides ensuring judicious utilisation of available financial resources, checking corruption and promoting good governance.
They also recommended construction of more hydel power projects to ensure supply of cheap hydroelectricity to the industry for sustainable economic growth.

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