ISLAMABAD: In the first half of fiscal year 2024 (1HFY24), Pakistan witnessed a substantial surge in its total debt and liabilities, reaching Rs81.20 trillion. It marked a notable increase of 27.2% year-on-year (YoY) from Rs63.83 trillion recorded in 1HFY23.
The State Bank of Pakistan (SBP) disclosed this in its latest debt data released on Monday. Breaking down this figure, the total debt amounted to Rs77.90 trillion, while liabilities stood at Rs4.62 trillion during this period.
Within the spectrum of total debt, external debt, encompassing borrowings from entities like the IMF, intercompany external debt from foreign direct investors, as well as government and non-governmental external borrowings, surged by 26.17% YoY to Rs33.611 trillion, compared to Rs26.639 trillion in 1HFY23.
Notably, Pakistan’s debt from the IMF stood at Rs2.14 trillion, registering a significant YoY increase of 24.17% in 1HFY24.
The data provided by the central bank also indicates that total liabilities, inclusive of both external and domestic, rose to Rs4.62 trillion, expanding by 27.51% YoY from Rs3.62 trillion in 1HFY23.
Additionally, a consolidated adjustment amounting to Rs1.338 trillion was noted in 1HFY24.
Servicing the total debt and liabilities surged to Rs5.70 trillion in 1HFY24, reflecting a notable increase of 29% YoY compared to Rs4.42 trillion in the corresponding period last year.
Of this total servicing amount, a significant portion of Rs4.39 trillion comprised interest payments on external debt, indicating a substantial YoY increase of 64.67%.
Further breakdown reveals that the remaining sum includes Rs1.22 trillion allocated for principal payments of external finances and Rs83.10 billion for interest payments on liabilities.
I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.
