Pakistan’s debt rises by 27.2% in first half of FY24

Pakistan’s total debt and liabilities reached Rs 81.194 trillion by the end of December 2023, showing a 27.2% increase from Rs 63.834 trillion in the same period of the previous fiscal year.

According to the latest data released by the State Bank of Pakistan (SBP), the main drivers of the debt and liabilities growth were the external debt and the interest payments on it. 

The external debt, which includes loans from the IMF, foreign direct investors, and other sources, rose by 26.17% to Rs 33.611 trillion. The debt from the IMF alone surged by 24.17% to Rs2.142 trillion.

The total liabilities, which include both external and domestic obligations, also increased by 27.51% to Rs4.623 trillion. The consolidated adjustment, which represents the difference between the total debt and liabilities and the net public debt, amounted to Rs1.338 trillion.

The servicing of the debt and liabilities also grew by 28.82% to Rs5.702 trillion in the first half of FY24, compared to Rs4.426 trillion in the same period of FY23. 

Out of this amount, Rs4.390 trillion were interest payments on external debt, which jumped by 64.67%. The remaining Rs1.229 trillion were principal payments on external finances and Rs83.1 billion were interest payments on liabilities.

Debt and liabilities in US dollar 

In US dollar terms, Pakistan’s external debt and liabilities climbed to $131.159 billion at the end of the first half (July-Dec) of fiscal year 2024, registering a growth of $1.417 billion or 1.09% over the quarter, and a year-on-year increase of 1.99% from $128.605 billion.

Public external debt, constituting 76.02% of the total, saw government external debt rise to $80.165 billion, reflecting increases of 2.11% over the quarter and 1.54% year-on-year. 

Long-term external debt also rose to $80.066 billion, with short-term debt significantly dropping to $99 million.

The SBP’s debt report detailed IMF loans totaling $5.069 billion to the central bank and $2.527 billion to the federal government, with foreign exchange liabilities reaching $11.939 billion.

Non-governmental external debts included borrowings from public sector enterprises, banks, and the private sector, with notable figures being a slight decrease in PSEs’ debt to $7.869 billion and a reduction in private sector debt to $12.277 billion. Intercompany debt saw an increase, totaling $4.675 billion.