Total debt increased to Rs15 trillion by September, according to the State Bank of Pakistan.
By end of the last fiscal year (June 30, 2013), the central government’s total debt was Rs14 trillion. That total increased to Rs15 trillion by the end of September 2013 -- an increase of Rs1 trillion, according to the State Bank of Pakistan.
The Ministry of Finance informed the National Assembly on Friday that “the public and publicly guaranteed foreign debt including IMF has increased by Rs403 billion as a result of depreciation of the Pakistani rupee during the present government.”
Pakistan Peoples Party (PPP) Parliamentarian MNA Nafisa Shah raised the issue in Parliament.
In response her question, Parliamentary Secretary for Finance Rana Muhammad Afzal Khan raised points on the devaluation of rupee, stating that initiatives like building up of reserves and enhancing exports were required to strengthen the rupee.
“We have planned substantial foreign exchange inflows, loans from multi-lateral and bilateral sources,” he said.
Foreign exchange reserves held by the State Bank of Pakistan (SBP) have declined to a 12-year low of $2.9 billion, hitting its lowest level since November 2001, according to newly released data.
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@Beware: Thanks for your prediction. Any other prediction?
@Pakistani Patriot:
I am not sure why you bring reference to Kashmir on this topic. Seems irrelevant. Since ET allowed you to post this, I hope they will allow my retort.
"Kashmir belongs to Kashmiris, not to India or Pakistan."
You are partly right in that Kashmir does not belong to Pakistan. As for India, it is a historical fact that Kashmir has been a Hindu/Buddhist land for over 5000 years.
"The “great India” should let the people of Kashmir decide their fate rather than holding them hostage at the point of guns and murders."
Good sentiments. By the same token would you agree that "the(sic) great Pakistan should let the people of Balochistan decide their fate rather than holding them hostage at the point of guns and murderers"?
where you got your education....your GDP is 500 billion and debt is 1 trillion its 200% means double...
piece and political stability is important factors for development of every country. if the elected government take care of this people will automatically take care of the business by themselves and every country automatically grows and nobody can stop them.
Zulfikar Ali Bhutto — 'We(Pakistan) will eat grass, even go hungry, but we will get one of our own (Atom bomb).... We have no other choice!'
@manish: Pakistan's GDP is $238 billion. The debt to GDP ratio is around 62%. This isn't that large an amount relatively speaking. The problem we have is that our government's revenue collection is too low to service that debt. So to make up for that they resort to the invisible tax called inflation i.e. debasing the rupee by creating new money.
@John the Baptist: Ummm...printing money leads to inflation. It does not increase debt. For someone who claims to be an investment banker, shocking lack of basics.
Forget Kashmir and other fanatic fighters and put your money where your mouth is. Who would the Kashmiris join a country which has 100 times more exchange reserves or a country hitting rock bottom despite all foreign aid? Why do people migrate to the west? They only adopt a better country not worse. Let us make our country a much better place to live first.
Nawaz had brought Pakistan to bankruptcy the last time he was prime minister, and it took Musharraf government several years to bring the economy back and when he left the foreign reserves were at a record $19 billion. It has taken Nawaz (with ample help from their other elected brotheren of PPP) only a few months to bring it right back down to $2.9 billion at a time when the world economy is growing. So how is it that the democratically elected governments are better for the people of Pakistan? The facts bear out otherwise. And this is just the beginning of the Nawaz government, much more to come, and people will be clamoring for Musharraf (or the new chief) again.
@manish: Kashmir belongs to Kashmiris, not to India or Pakistan. Your comment reeks of modern day colonialism. It didn't work in history and it will not work in the future. The "great India" should let the people of Kashmir decide their fate rather than holding them hostage at the point of guns and murders.
Looks like you will be eating grass soon! Perhaps you can sell some of those 200 or so A bombs that you keep on harping on about.
blaming the politicians will not work. people chose the men from themselves. So they are the mirror of the society at large. External debt which is payable in foreign currencies will automatically increase with depreciation of rupee. ensure the inflow of dollar either by export , or by investment by foreigners or inward remittance by the diaspora which should exceed the outflow and rupee will appreciate followed by automatic reduction in the external debts in terms of rupee. Domestic environment has to be made conducive for investment . that will accelerate the economic growth too. no other way .
Irish economy bankrupt in 2010 with a debt of about 100 billion Euros was taken over by IMF and within 3 years have turned the economy around .Why cant our government give a FULL charge to IMF to tax all the rich and sort the economy for the ordinary people?
Syed help your self your country is seriously in deep trouble , its the verge of destruction . Kashmir is, was and will be a part of great India . Pakistan will face sever consequences if it will stick on the old stand on Kashmir. Pakistan should forget Kashmir if it wants to progress...it will never depart Kashmir from india.
We have elected businessman Sharif now all our problems would be solved. Our prices of everything are going high and at par with foreign countries but the value of Rs. is shrinking. We have gotten rid of corrupt Zardari and coalition govt who were taking all the energy and money from the country. Now all the money is being spent on people! Those who are worried about the debt, we have the bombs and nobody can force us to pay back. We have a few cards up our sleeves and that is why we can afford a million man ary with highest perks in the world.
AoA Indeed! we don't mean to ruin your plans, rest of the world! but Pakistan is back, pretty soon, we'll have the best and highest total debt, we'll see who is laughing then. And, to think that we are pulling this off with an internal war and the cost of the war on terror that we are bearing.
Kashmiris will never accept Indian occupation. Our Pakistani brothers will continue to help us end Indian illegal occupation.
The "Experienced Siasatdaan" are work. Feeling sorry for those who actually stamped on "Lion"!
Pakistan's GDP is 500 billion and debt is 1 trillion..... how this debt could be repaid ..when country is facing so many problem .. dollar is at 109 means future is challenging for this nation where there is majority of striving youth ......
Well done the most experienced team of PMLN. Eat Nihari,drink lassi and print more and more money.
No problem, let's print some more money and give it to duffers with no business plans just to buy some votes!
PMLN Zindabad! Sher aya sher.