Pakistan’s total debt has continued to rise, reaching a staggering Rs 63,399 trillion at the end of November in the fiscal year 2023-24. Notably, the country’s total debt increased by more than Rs 12.430 trillion during the tenure of the Pakistan Democratic Movement (PDM) and the caretaker government.
The overall debt burden of Pakistan surged to Rs 63.390 trillion, encompassing Rs 40.956 trillion in domestic loans and Rs 22.434 trillion in international loans. In November 2022, the country’s overall debt stood at Rs 50.959 trillion, marking a significant increase to Rs 63.390 trillion in November 2023.
In a bid to address its financial challenges, Pakistan has given assurances to the International Monetary Fund (IMF) regarding a new loan program.
According to the Memorandum of Economic and Financial Table (MEFPT), Pakistan has committed to boosting its foreign reserves to $13.6 billion in the fiscal year 2024-25 to qualify for the new loan program from the international lender.
As part of its financial strategy, Pakistan intends to seek a rollover of a $6.34 billion loan in the next financial year. Additionally, foreign investment is expected to see an increase of $1.31 billion, as outlined in the MEFPT.
These developments underscore Pakistan’s efforts to engage with international financial institutions, particularly the IMF, to manage economic challenges and meet its financial requirements.
However, the growing debt burden raises concerns about the country’s fiscal sustainability and the potential impact on its economy.
