New Delhi: At a time when Pakistan Prime Minister Imran Khan is visiting many countries to seek financial help for Islamabad’s ailing economy, new reports emerged on Tuesday that the Pakistan government has accumulated a record public debt of PKR 7,509 billion during its first year in power.
State media, citing sources, stated that the State Bank of Pakistan has sent this borrowing data to the Prime Minister’s Office.
As per the data, the government has borrowed Rs 2,804 billion from foreign sources between August 2018 and August 2019, and Rs 4,705 billion was burrowed from domestic sources.
As per the data from the State Bank of Pakistan, a 1.43 per cent increase was found in the public debt of Pakistan in merely first two months of the current fiscal year. In August last year, the debt was only Rs 24,732 billion which has increased to Rs 32,240 billion in August this year.
The data further stated that the government’s tax collection in the first quarter of the current fiscal was Rs 960 billion while the target was Rs 1 trillion.
While the total public debt stood at PKR 31.786 trillion at the end of June 2019, the government has additionally projected public debt to increase by 47 per cent to PKR 45.57 trillion in five years.
The country’s ailing economy is refusing to grow despite many countries, including Saudi Arabia and China, providing bailout packages to Islamabad.
In June this year, Pakistan secured a bailout package of $3 million from oil-rich Qatar. This is the fourth gulf state to come forward to help Pakistan during the past 11 months to the country’s economy.
Earlier China gave $4.6 billion in the form of deposits and commercial loans, and Saudi also provided $3 million cash deposit and $3.2 billion oil facility on differed payment. Earlier the UAE had also provided $2 billion as a cash deposit.
Pakistan in May also signed a preliminary agreement with the International Monetary Fund for a bailout package $6 billion to strengthen the country’s crippling economy. It was reported that the Pakistan government’s enhance exports has increased the country’s dependence on bilateral and multilateral creditors.