Govt to 'retire Rs18.7tr debt this year'
A consequence of the mounting debt pile is a huge increase in the cost of debt servicing. photo: file
The federal government has released details of domestic and foreign debts up to June of this year. It has also shared a framework for the repayment of domestic and foreign debt over the next 16 years.
According to the information presented by the Ministry of Finance in the National Assembly, by June of this year, the country's total debt stood at Rs71 trillion, of which over Rs47 trillion is domestic debt and more than Rs24 trillion is foreign debt.
Thus, 66% of the total debt comprises domestic loans, while 34% is foreign debt.
The domestic debt has been raised through the issuance of government securities, while foreign debt has been obtained from development partners and commercial institutions.
The Ministry of Finance has presented a debt repayment schedule covering the next 16 years, from 2024 to 2040. According to the documents, Rs18.7 trillion will be repaid in 2024, followed by Rs8.7 trillion in 2025. In 2026, Rs7.6 trillion, and in 2027, Rs4.3 trillion will be repaid.
According to the documents, Rs6 trillion will be repaid in 2028, and Rs8.4 trillion will be paid towards government debt in 2029. In 2030, Rs2.4 trillion, in 2031, Rs2.6 trillion, and in 2032, more than Rs1.1 trillion are scheduled for repayment.
For 2033, Rs1.2 trillion, in 2034, Rs800 billion, and in 2035, Rs900 billion in domestic and foreign debt will be repaid.
According to the Ministry of Finance, Rs800 billion will be repaid in 2036, Rs600 billion in 2037, while a total of Rs1 trillion will be repaid in 2038 and 2039. According to the schedule, Rs800 billion in domestic and foreign debt repayments are planned for 2040.