Pakistan debt hits Rs81 trillion

Fiscal deficit cited as major reason behind rising debt

ISLAMABAD:

Pakistan's total debt has crossed Rs81 trillion with every citizen carrying a liability of around Rs325,000, the Senate's Standing Committee on Economic Affairs was informed on Thursday.

During the committee meeting, officials from the Economic Affairs Division revealed that of the total debt, external liabilities account for over Rs26 trillion, while domestic borrowings exceed Rs55 trillion.

The officials cited the country's fiscal deficit as a major driver of rising debt, noting that additional borrowing is required to meet the shortfall. They also highlighted that the depreciation of the rupee has further increased the debt burden.

The committee expressed concern over placing responsibility for economic policies solely on parliament.

The committee chairman said Khyber-Pakhtunkhwa government had borrowed Rs300 billion, which remained unutilized, yet the provincial government continued to pay interest on the loan.