External debt rises by 20 in Pakistan

Pakistan government’s external debt rose by a massive 20 per cent in the first half of the current fiscal (2021-22), to reach a high of Rs 21 trillion in December 2021.

According to the State Bank of Pakistan (SBP) data, the government’s total debt stocks rose by 8 per cent in the first half of the current fiscal (2021-22) which increased the total domestic and external debt to an all-time high of Rs 51.724 trillion in December 2021, up from Rs 47.931 trillion in June 2021, reported Business Recorder.

Continued borrowing from domestic and external resources for financing the fiscal deficit is increasing the country’s debt burden, the report further said citing economists.

The external debt included Rs 14.814 trillion of government external debt, Rs 4.223 trillion non-government debt, and loans of Rs 1.188 trillion from the International Monetary Fund (IMF).

Earlier this month, IMF released a fresh tranche of loans to the tune of USD 1 billion to Pakistan, subject to fulfilling certain conditions.

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