The total public debt stock of the federal government of Pakistan increased by 15 per cent current year in May 2024. It kept surging to Rs67.816 trillion from Rs58.964 trillion in the corresponding month of the previous year, up Rs8.852 trillion year on year.
This trend also reaches a 2.6 per cent rise on a month-to-month perspective from April 2024, when the recorded debt stock stood at Rs. 66.083 trillion. The rise in debt is mainly attributed to a significant increase in domestic borrowing. The central government’s domestic solo debt spiralled down by 24.7 per cent, having crossed over from Rs. 37.056 trillion in May 2023 to Rs. 46.208 trillion in May 2024.
A deeper analysis of the specifics reveals that long-term public debt has risen from Rs. 29.483 trillion to Rs. 36.599 trillion and that short-term debt has grown from Rs. 7.434 trillion to Rs. 9.522 trillion over the same period. Such rapid growth in debt has pointed to underlying economic difficulties and laid to rest concerns over established economic stabilization in the future.
As Pakistan navigates through the ever-increasing landscape of debt, the implications for economic policy and financial stability are issues that keep any government or analyst wondering.
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