Pakistan's total debt reaches Rs 71trillion, NA told

ISLAMABAD: The federal government has released details of Pakistan’s domestic and foreign debt, revealing that the country’s total debt has reached Rs 71 trillion as of June 2024, ARY News reported.

According to the document presented in the National Assembly, the country’s total debt comprises 66% domestic debt and 34% foreign debt.

The domestic debt stands at over Rs 47 trillion, while foreign debt exceeds Rs 24 trillion. The Ministry of Finance has also presented a debt repayment schedule for the next several years.

According to the schedule, Pakistan will pay Rs 18,700 billion in 2024, Rs 8,700 billion in 2025, Rs 7,600 billion in 2026, and Rs 4,300 billion in 2027.

In the coming years, the debt repayment schedule is as follows: Rs 6,000 billion in 2028, Rs 8,400 billion in 2029, Rs 2,400 billion in 2030, and Rs 2,600 billion in 2031. The document reveals that a significant portion of the debt, over Rs 1 trillion, is scheduled for repayment in 2031.

READ: Pakistan’s total debt to reach Rs79 trillion by June 2025: Report

Earlier, the federal government unveiled a 3-year economic plan, which aims to increase the share of provinces in the federal budget from 39.4% to 48.7% by 2027.

According to the report, the provinces will receive Rs 10,350 billion by fiscal year 2026-27 under the National Finance Commission (NFC) Award.

The plan indicates an increase in provincial shares, with Rs 8,921 billion allocated for the next fiscal year 2025-26, and Rs 10,350 billion by 2026-27.

The current fiscal year will see a transfer of 39.4% of the budget to provinces under the NFC Award. The government has also acknowledged the need to revise the method of distributing resources to provinces under the NFC.

Additionally, the plan highlights the country’s debt burden, with total debts expected to reach Rs 79,731 billion by the end of the current fiscal year. Local loans are expected to increase by approximately Rs 7,671 billion, while foreign loans will rise by Rs 818 billion.