According to Pakistan Economic Survey 2011-12, Pakistan’s public debt has recorded at Rs 12,024 billion at the end of March 2012, which showed an increase of 12.3 per cent or Rs 1315 billion in one year period.
The increased amount also includes Rs 391 billion consolidated by the government into public debt against outstanding previous years subsidies related to the food and energy sectors.
Public debt as a percentage of the GDP stood at 58.2 per cent by the end March 2012 compared to the 55.5 per cent of the GDP during the same period last year. The break-up of Rs 12,024 billion revealed that domestic currency debt stood at Rs 7,206 billion and foreign currency debt recorded at Rs 4818 billion. The total domestic debt increased by Rs 1190.5 billion in the first nine months of the current fiscal year. This increase stems from net issuance of market debt namely treasury bills (Rs 576.4 billion) and Pakistan Investment Bills (Rs 307.5 billion).
Meanwhile, Pakistan’s External Debt and Liabilities (EDL) stock has recorded at higher side of over $60.3 billion during as of March 2012. During July-March 2012, $179 million was added to the EDL stock.
It might be mentioned here that total public debt includes all government and government guaranteed obligations denominated in rupee as well as in foreign currency. It is an important means of bridging government financing gaps.
The public debt servicing stood at Rs 719 billion by the end of March 2012 against the budget amount of Rs 1034.2 billion.
According to the Economic Survey, debt owed to International Monetary Fund (IMF) aggregated up to $8.1 billion. Payment amounting to $793 million has been made in the third and fourth quarter of the fiscal year 2011-12.