Each Pakistani under Rs94,890 debt: Finance ministry

  • Domestic debt stands at Rs12.31 trillion ($58b)
  • In just four years, Nawaz’s government borrowed $35 billion in new loans

ISLAMABAD – Every Pakistani owes nearly Rs95,000 as the country’s foreign debt and liabilities stand at Rs6.11 trillion ($58 billion), the finance ministry told the National Assembly on Friday.

According to documents shown to the Parliament, the country’s domestic debt stands at Rs12.31 trillion or $117 billion until December 31, 2016.

The net public or combined debt comes to Rs18.44 trillion or Rs117 billion. As per these statistics, each Pakistani now owes a debt of Rs94,890.

During his four-year tenure, ex-PM Nawaz Sharif’s government obtained a whopping $35 billion in new loans to repay maturing debt and keep official foreign currency reserves at a level which could give a sense of economic stability to investors.

About $17 billion or nearly half of the total loans obtained from July 2013 to June 2017 were utilised to repay the previous debt, shows statistics maintained by the finance ministry.

The government added net $18 billion to the country’s total external debt and liabilities – the highest amount added by any government during its tenure.

Between July 1, 2016 and March 31, 2017, the government borrowed Rs819.1 billion from banks, show the official documents.

It borrowed Rs734.62 billion of this amount from the State Bank of Pakistan and Rs84.50 billion from commercial banks.

Economists warn the country is heading towards a serious debt problem that will destabilise the economy.