Concerns are mounting as Pakistan’s government debt is projected to increase significantly in the upcoming fiscal year 2024-25.
According to sources, the total government debt is expected to rise by more than 10 trillion PKR, potentially reaching a staggering 87 trillion PKR.
Negotiations are underway between the Government of Pakistan and the International Monetary Fund (IMF) concerning the structure of new loans amid fears of escalating debt levels. The IMF has also expressed concerns about the potential debt increase in the upcoming fiscal year’s budget, estimating a rise of approximately 10.433 trillion PKR.
This projected increase would push the total government debt to approximately 87.346 trillion PKR by the end of fiscal year 2024-25. Local debt is expected to surge by 7.636 trillion PKR, while foreign debt could increase by 2.797 trillion PKR.
Should these projections hold, the total domestic debt would amount to 53.878 trillion PKR, with foreign debt climbing to 33.648 trillion PKR by the close of the fiscal year.
By the end of the current fiscal year, total government debt is anticipated to stand at 76.913 trillion PKR, composed of 46.242 trillion PKR in domestic debt and 30.671 trillion PKR in foreign debt. These figures underscore Pakistan’s significant fiscal challenges as it navigates its economic future.
