Pakistan grapples with massive Rs63.4 trillion debt

In November 2023, Pakistan’s total debt soared to an alarming Rs63.399 trillion, marking a significant increase from Rs50.959 trillion in the same month of the previous year. 

According to details, this surge comprises Rs40.956 trillion in domestic loans and Rs22.434 trillion in international loans.

The recent development follows Pakistan’s commitment to the International Monetary Fund (IMF) for a new loan programme. 

As outlined in the Memorandum of Economic and Financial Table, Pakistan has pledged to boost foreign reserves to $13.6 billion in FY2024–25, facilitating access to the IMF’s financial assistance.

To support its financial strategy, Pakistan is planning to roll over a $6.34 billion loan in the upcoming fiscal year, coupled with a targeted increase of $1.31 billion in foreign investments, as highlighted by the MEFPT. 

These measures aim to navigate the country through its evolving economic landscape.