ISLAMABAD (Eshfak Mughal ):- Pakistan’s Central Government debt climbed by Rs 1172 billion to Rs.39.87 trillion during the first month of the current fiscal year 2012-22, according to the report issued by the State Bank of Pakistan mainly due to increase in external debt.
The report said that the central government debt has been increased by Rs.1172 billion (3 percent of total debt) in July 2021, the first month of the current fiscal year.
The debt increased mainly due to currency depreciation during the month which increased by Rs 5 percent. The PKR was depreciated against USD from Rs157 to Rs.162 during July 2021.
The central government external debt increased by Rs611 billion from Rs 12432 billion to Rs 13043 billion during July 2021.
The government has added Rs14.9 trillion to the public debt during almost three years in power, which is equal to 140% of the total debt the previous Pakistan Muslim League-Nawaz (PML-N) government acquired in five years. These figures shattered the Prime Minister Imran Khan’s dream of reducing the debt burden.
On May 31, 2018, when the PML-N government completed its five-year term, the total public debt stood at Rs24.95 trillion, or equal to 72.5% of GDP. In just three years, it has surged to 83.5% of GDP, which is unsustainable and carries huge risks for the economy and the country’s foreign policy.
The stock of long term external debt on government was swelled by Rs574 billion to Rs 12871 billion from 12297 billion during the month of July of current year. The short term central government external debt was increased by Rs 37 billion to to Rs172 billion from Rs 135 billion during the period.
In February 2019, Prime Minister Imran Khan had vowed to bring the public debt down to Rs20 trillion. He had been very critical of the economic policies followed by the previous PPP and PML-N governments. He also had set up the Debt Inquiry Commission to investigate the reasons behind the addition of Rs18 trillion to the debt stock in 10 years.
Despite completion of the inquiry, the premier has withheld the release of the report.
The total internal central government debt was grew by Rs 561 billion during the July from Rs 26826 billion from Rs 26265 billion, according to the report of the State Bank.
The Imran led PTI Government has also raised Rs30 billion through Nya Pakistan Certificates in July, according to the report. The investors merely purchased Nya Pakistan Certificates worth of Rs three billion while it’s total investment so far could reached to Rs 30 billion. These figures shows that majority of investors are not taking interest in this PTI branded scheme despite of promotion.