The State Bank of Pakistan (SBP) has announced that Pakistan’s debt has increased significantly in July 2023. According to the SBP’s statement, the government’s debt has risen to a staggering 907 billion Pakistani rupees.
The statement reveals that by the end of July 2023, the government’s total debt has reached 6.17 trillion rupees, with domestic debt accounting for 3.9 trillion rupees and external debt amounting to 2.273 trillion rupees.
The SBP’s announcement further highlights that the government’s debt has increased by 1.5% in just one month, indicating the growing financial challenges Pakistan is facing. This surge in debt is a cause for concern as it may have implications for the country’s economic stability and fiscal policies.
The statement also emphasizes that the majority of Pakistan’s debt is in the form of domestic debt, which is a significant burden on the country’s finances. While external debt is also a substantial portion, managing domestic debt effectively is crucial to ensure fiscal sustainability.
This announcement by the State Bank of Pakistan underscores the pressing need for the government to address its financial situation and explore strategies to manage and reduce the rising debt. It also highlights the importance of prudent financial management and fiscal responsibility to safeguard Pakistan’s economic stability and future growth prospects.
The government will likely need to consider various measures, such as increasing revenue collection, reducing unnecessary expenditures, and seeking international financial assistance, to manage the growing debt burden effectively. The situation calls for a comprehensive and sustainable fiscal policy to steer Pakistan’s economy in a more stable and prosperous direction.