Pakistan's debt rises to Rs67.8tr during first three months of incumbent govt

ISLAMABAD: The PML-N led coalition government has surpassed previous caretaker setup as Pakistan’s debt reached Rs67.816 trillion during first three months of the current government, ARY News reported.

According to State Bank report, the federal government’s debt stood at Rs 67,816 billion by May 2024, with an increase of Rs 3,011 billion from March to May 2024.

In contrast, the caretaker government’s debt had increased by Rs 1,416 billion during its last three months in office.

The federal government’s debt surged between December 2023 and February 2024, with the debt standing at Rs 64,806 billion in February 2024 and Rs 63,390 billion in November 2023.

The SBP reported that the country’s total debt was Rs 58,964 billion in May 2023, which increased to Rs 66,086 billion in April 2024.

Read More: Pakistan paid Rs5.517 trln in debt servicing during July-March FY24

The central bank reported that Pakistan’s domestic debt also reached a record level of Rs 46,208 billion.

The SBP said that ‘Naya Pakistan Certificates’ saw a decrease in annual debt by 37.51 percent to Rs 87 billion. The central bank also reported a 1.4 percent decrease in the federal government’s external debt, from Rs 21,908 billion to Rs 21,608 billion.

Earlier in May, the federal government’s fiscal woes have multiplied, as Pakistan paid Rs5.517 trillion in debt servicing in the first nine months of the FY2023-24, ARY News reported quoting an official document of the finance ministry.

According to the fiscal operation report released by the finance ministry, Pakistan paid Rs4807 billion in in domestic debt servicing and Rs710 billion in international debt servicing.