Each one of us owes Rs82,627
The primary source of increase in public debt during first nine months of current fiscal year was in domestic debt
CREATIVE COMMONS
KARACHI:
Every Pakistani is worse off by an additional Rs4,700 as the total debt of the country when distributed comes to around Rs82,627 per head against Rs77,927 last year .
Pakistan’s total outstanding debt has reached Rs15,534 billion up till March 2014, rising 7.4% from Rs14,466 billion, according to the Economic Survey 2013-14. A major chunk of the total debt comes from domestic debt, which increased by Rs1,306 billion to Rs10,823 billion.
But what is encouraging is the fact that most of this increase in new debt came from long-duration instruments like Pakistan Investment Bonds, Ijara Sukuk bonds and Prize Bonds.
[infogram url="https://infogr.am/infographic-01170" height="310"]
This is particularly important since Pakistan is stuck in a vicious cycle of debt where every few months it borrows from commercial banks to payoff past loans.
The survey warned that around 51% or Rs5,549 billion of domestic debt has to be repaid within the year. That means government will probably have to borrow to settle these Rs5.5 trillion.
Net government borrowing from the banking system reduced significantly to Rs.199.6 billion during July-9th May, 2013-14 from Rs.992.9 billion recorded in the same period of fiscal year 2012-13
The primary source of increase in public debt during first nine months of current fiscal year was in domestic debt that positioned at Rs.10,823 billion representing an increase of Rs.1,306 billion, whereas, external debt posed at Rs.4,711 billion representing a decrease of Rs.138 billion as compared to end June 2013, according to the survey.
The decline in external debt during first nine months of current fiscal year is mainly attributed to net repayments and appreciation of Pak Rupee against US Dollar.
Every Pakistani is worse off by an additional Rs4,700 as the total debt of the country when distributed comes to around Rs82,627 per head against Rs77,927 last year .
Pakistan’s total outstanding debt has reached Rs15,534 billion up till March 2014, rising 7.4% from Rs14,466 billion, according to the Economic Survey 2013-14. A major chunk of the total debt comes from domestic debt, which increased by Rs1,306 billion to Rs10,823 billion.
But what is encouraging is the fact that most of this increase in new debt came from long-duration instruments like Pakistan Investment Bonds, Ijara Sukuk bonds and Prize Bonds.
[infogram url="https://infogr.am/infographic-01170" height="310"]
This is particularly important since Pakistan is stuck in a vicious cycle of debt where every few months it borrows from commercial banks to payoff past loans.
The survey warned that around 51% or Rs5,549 billion of domestic debt has to be repaid within the year. That means government will probably have to borrow to settle these Rs5.5 trillion.
Net government borrowing from the banking system reduced significantly to Rs.199.6 billion during July-9th May, 2013-14 from Rs.992.9 billion recorded in the same period of fiscal year 2012-13
The primary source of increase in public debt during first nine months of current fiscal year was in domestic debt that positioned at Rs.10,823 billion representing an increase of Rs.1,306 billion, whereas, external debt posed at Rs.4,711 billion representing a decrease of Rs.138 billion as compared to end June 2013, according to the survey.
The decline in external debt during first nine months of current fiscal year is mainly attributed to net repayments and appreciation of Pak Rupee against US Dollar.