Pakistan debt crosses $254 billion as of June 2024

Economically-crippled Pakistan has now touched the mark of $254 billion (PKR 71 trillion) in debt as of June 2024, Pakistan-based ARY News reported, on Friday (Aug 30). 

The Pakistan federal government released details of the domestic and foreign debt of the country, and the data was presented to the National Assembly. 

The country's total debt comprises 66 per cent domestic debt and 34 per cent foreign debt, according to the document presented in the National Assembly. 

The total debt sums to Rs 47 trillion in domestic loans and over Rs 24 trillion in foreign loans. 

Moreover, the Pakistan Ministry of Finance also presented a debt repayment schedule for the next several years. 

As per the schedule, Pakistan will pay Rs 18,700 billion in 2024, Rs 8,700 billion in 2025, Rs 7,600 billion in 2026, and Rs 4,300 billion in 2027. 

Further, in future, the debt-ridden country will have to pay Rs 6,000 billion in 2028,  Rs 8,400 billion in 2029, Rs 2,400 billion in 2030, and Rs 2,600 billion in 2031. 

Pakistan also has to pay a significant portion of the debt and is scheduled for repayment in 2031. 

The country has been dealing with significant economic challenges, due to which, it was seeking bailout programs from International Monetary Fund (IMF). 

In July, Prime Minister Shehbaz Sharif-led Pakistan government revealed a three-year economic plan, aiming to increase the share of provinces in the federal budget. The plan also highlighted the country's debt burden with total debts expected to reach PKR 79,731 billion by the end of the current fiscal year.

Earlier, the federal government shared a three-year economic plan, which aims to increase the share of provinces in the budget from 39.4 per cent to 48.7 per cent by 2027. 

The provinces will receive Rs 10,350 billion by 2026-27 under the National Finance Commission (NFC) Award, the report stated.