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National Debt to Rise by 47% in Next Five Years

National Debt to Rise by 47% in Next Five Years

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The government estimates that Pakistan’s total public debt will increase from Rs. 31 trillion to Rs. 45.57 trillion

The ministry of finance has also calculated total external debt to jump up 80%, from Rs. 10.446tr to Rs. 18.77tr. Furthermore, the Ministry’s Public Debt Management Plan calculated total domestic debt to increase by more than 30%, eventually becoming Rs. 26.8tr from Rs. 20.57tr.

However, in spite of the huge estimated rise in public debt stock, the debt to GDP ratio is believed to come down 80.4% to 66.5% in these five years.

So, while total public debt will gradually increase every year, the debt as a percentage of the GDP will be declining annually, mostly because of the expected 78% increase in the size of the economy. Overall, this will result in reduced total debt of the country.

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