Saturday, February 1, 2020
Debt increased by 40% on Pakistan facing economic crisis
Foreign and domestic debt is increasing on Pakistan, which is facing economic crisis. In the last 15 months itself, a record 40 percent increase has been recorded in loans and liabilities.
According to the Dawn newspaper, in its statement on the debt policy in Parliament on Friday, the Finance Ministry admitted that there has been a gross violation of the Fiscal Responsibility and Debt Limit Act (FRDLA). Total liabilities and debt increased to Rs 41.489 lakh crore by September 2019. Whereas in 2018 it was Rs 29.879 lakh crore.
The FRDLA aims to reduce the fiscal deficit to below 4 per cent of GDP. The government said that foreign debt increased by 36 percent to Rs 10.598 lakh crore in a period of 15 months. While the domestic debt has been Rs 22.65 lakh crore. This figure was Rs 16.416 lakh crore in June 2018.
The ministry said that by the end of 2019, total debt and liabilities increased by 35 per cent, 100 trillion 34 billion 40 crore rupees and it reached 402 trillion 23 billion 30 crore rupees. During the last 15 months, the government's domestic debt has increased by 38 per cent and foreign debt by 36 per cent.