Pakistan’s economic crisis is getting worse with every passing day, as the latest report issued by the State Bank of Pakistan stated that the country’s overall debt rose sharply by 38.1% to Rs54.94 trillion by the end of January 2023 as compared to the year-ago period.
The State Bank of Pakistan (SBP) said that Islamabad’s total debt has increased to Rs54.94 trillion. The report further noted that in December 2022, the total debt climbed by Rs3.94 trillion.
According to the SBP report, Pakistan has a foreign debt of Rs. 20.68 trillion in January 2022.
According to the analysis, a significant devaluation of the local currency relative to the US dollar could be the cause of the increase in debt (US Dollar).
Pakistani rupee makes recovery against USD
while still being pressed for funds In order to extend its $2 billion deposits for another year while Pakistan waits for a much-needed $1.1 billion tranche of funds from the international lender, Pakistan has informed the IMF.
Pakistan informed the IMF of its intentions to increase its shrinking foreign exchange holdings to $10 billion by the end of June.
In response to the IMF’s request for the release of the $1.1 billion tranches under the $7 billion loan facility, Pakistan informed the Fund about the different measures it had implemented.
