Pakistan’s total Debt Reaches Rs. 53.5 Trillion

The total loans and obligations of Pakistan rose to Rs53.5 trillion, a rise of Rs23.7 trillion, in the rule of former Prime Minister Imran Khan. The basic accountabiy of the government to raise the public debt was Rs19.5 trillion, which later increased to Rs44.4 trillion by March 2022, as per the central bank.

The burden of the debt kept rising in absolute terms and in the category of the size as well of the national economy, as per the State Bank of Pakistan’s (SBP) previous debt record for the last of March 2022, emphasising the evidence that Pakistan’s economic profitability needs to have enormous long-term changes.  

The problems of debt have been modified, and no government has taken serious initiatives to drop the debt burden in the last ten years. Pakistan’s overall debt and obligations were standing at a staggering amount of 53.5 trillion, with an increase of 23.7 trillion in comparison to the previous year. These figures are in comparison to when Pakistan Tehreek-e-Insaf came to power. 

There was a promise by Imran Khan to reduce the country’s debt, which according to him was a result of the previous government’s mismanagement of the finances of the state. He had promised this when he became the Prime Minister of Pakistan in July 2018.

A commission was established by Imran Khan when he came into power to monitor and hold the ones responsible for the country’s debt increase from 6 trillion in 2008 to 24.5 trillion by 2018.

The suspected wrongdoers were Nawaz Sharif, Asif Ali Zardari, and many more were questioned.  Despite all the work shown to the state of Pakistan, there was never a public report from the Debt Commission.  

Pakistan’s debt and liabilities were at 76.4 percent in 2018 and had risen by a staggering 80 percent by March of the current year. An analysis made by the SBP stated that PTI’s administration has been responsible for an additional 19.5 trillion in debt within its tenure of 3.5 years. That’s more than any government that has been in power before in Pakistan.

According to SBP’s data, the debt of Pakistan stood at 44.4 trillion at the end of March 2022.   PML-N contributed 10 trillion of this debt during their previous 4.5 years in power, while PPP contributed 8 trillion.

While Imran Khan’s 43 months of governance surpassed his opponents, This increase in public debt is thought to be the result of less revenue collected than necessary, currency depreciation in the international market, an increase in interest rates, more spending, debt mismanagement, and losses suffered by firms as a result of the state’s operation.