Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    IShowSpeed Daniel La Belle race
    Videos

    IShowSpeed Beats Daniel La Belle in 40-Meter Race, Hits 41M Subscribers

    June 24, 2025 2 Min Read
    Cardi B new single Outside
    Videos

    Cardi B’s ‘Outside’ Single Sparks Buzz Over Offset and Stefon Diggs

    June 20, 2025 2 Min Read
    Squid Game Season 3
    Videos

    Squid Game Season 3: Final Trailer Unveils Epic Plot

    June 14, 2025 2 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Pakistan’s Alarming Debt Surge: PDM Government’s 15-Month Financial Challenge
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
Pakistan circular debt financing
PhotoNews Pakistan > Business > Pakistan’s Alarming Debt Surge: PDM Government’s 15-Month Financial Challenge
Business

Pakistan’s Alarming Debt Surge: PDM Government’s 15-Month Financial Challenge

Web Desk
By Web Desk Published August 17, 2023 2 Min Read
Share
An Illustration Depicting the Debt Burden on the General Public
SHARE

In a concerning turn, Pakistan Democratic Movement (PDM) government amassed a public debt of Rs18.5 trillion within 15 months. This surpassed the debt its rival, Pakistan Tehreek-e-Insaf, accrued over its 42-month rule. As per the State Bank of Pakistan (SBP), the gross public debt soared from Rs44.4 trillion in March 2022 to Rs62.9 trillion by the end of the 2022-23 fiscal year. This surge in debt, without any concrete strategy to curtail it, led the federal government’s debt to Rs60.8 trillion by June 2023.

Comparison with Previous Administrations

The Imran Khan-led government added Rs18.1 trillion to the public debt in its 44-month tenure. In contrast, under PM Shehbaz Sharif, the PDM administration eclipsed this in a mere 15 months. Historically, the Pakistan Peoples Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N) collectively contributed Rs18 trillion to the debt from 2008 to 2018. By comparison, the PDM government’s daily average debt addition stood at Rs41 billion, markedly higher than the PTI government’s Rs14.5 billion daily average.

Impact of External Debt and Currency Depreciation

The federal government’s external debt surged by 48% to Rs22 trillion within 15 months, largely driven by currency devaluation. As of March 2022, external debt rested at Rs14.9 trillion. The exchange rate also fluctuated significantly, from Rs183.5 to a dollar in March 2022 to Rs295 in the current scenario. Such rapid depreciation has also intensified inflation. Pakistan’s overall debt has risen to Rs77.1 trillion, representing 91.1% of the national economy. Any ratio beyond 50% is deemed unsustainable for a developing nation like Pakistan.

Fiscal Mismanagement and Reckless Borrowing

Despite being on the International Monetary Fund’s (IMF) agenda, Pakistan failed to elevate its tax-to-GDP ratio over the past four years. This underscores the flawed strategy of obtaining international loans under the guise of tax reforms. Furthermore, the Shehbaz Sharif administration, much like its forerunners, continued to invest in provincial projects, further exacerbating the financial strain.

TAGGED:FeaturedPak­istan
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

HBL Saving Made Easy
HBL Saving Made Easy

Recent Posts

Wall Street Tesla

Wall Street Dips as Tesla Falls Amid Trump-Musk Feud Over Tax Bill

Pakistan's Inflation June 2025

Pakistan’s Inflation Rises to 3.2% in June 2025, Aligns with Forecast

International Driving Permit at Lahore airpot

Punjab Launches Pakistan’s First International Driving Permit Kiosk at Lahore Airport

Post Archives

More Popular from Photonews

Karachi PECHS robbery 2025
Sindh

TikTokers Arrested for Rs130M Robbery in Karachi’s PECHS Area

2 Min Read
Diddy trial daughters 2025
Entertainment

Diddy’s Daughters Break Down as Sex Trafficking Trial Nears Verdict

3 Min Read
KP police anti-drone tech
Khyber Pakhtunkhwa

Khyber Pakhtunkhwa Police Deploy Advanced Anti-Drone Tech to Combat Terrorism

2 Min Read
Pakistan

CIE Offers Free Retakes for Leaked AS & A Level Exam Papers

On July 1, 2025, Cambridge International Education (CIE) announced that students affected by the partial leak…

July 1, 2025
Pakistan

Henley Passport Index 2025: Singapore Tops Global Rankings, Pakistan at 100th

The Henley Passport Index 2025, released on June 29, 2025, ranks global passports based on visa-free…

June 29, 2025
Pakistan

BBZ Claims Govt Agrees to Income Tax Exemption on Salaries Below Rs1.2M

On June 26, 2025, Bilawal Bhutto Zardari, chairperson of the Pakistan Peoples Party (PPP), announced the…

June 26, 2025
Sports

Ilia Topuria Claims UFC Pound-for-Pound King Title in 2025, Surpassing Makhachev

On July 1, 2025, Ilia Topuria ascended to the top of the UFC men’s pound-for-pound rankings,…

July 1, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?