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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