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Correction: An earlier version of this story incorrectly stated the overall debt and liabilities to have crossed Rs2.2 trillion. The correct figure is Rs22 trillion. The error is regretted.
Pakistan's overall debt and liabilities have soared to an all-time high and have crossed Rs22 trillion ─ an increase of Rs8tr since the PML-N government came to power, said the recently released National Data Summary released by the State Bank of Pakistan (SBP).
The SBP summary shows that on September 30, 2016, the country’s overall domestic debt and liabilities stood at Rs14.79tr, whereas the external debt and liabilities stood at $72.98 billion on June 30, 2016.
In the present government’s three years, the domestic debt and liabilities showed an increase of Rs5.26tr and external debt more than Rs2.5tr.
According to official documents in June 2013, the overall debt and liabilities were at the level of Rs14.32tr under which domestic debt and liabilities stood at Rs9.52tr and external debt and liabilities were recorded at Rs4.8tr.
SBP data on Sept 30, under the heading of central government debt, mentioned that domestic debt stood at Rs14.39tr in which long term debt stood at Rs7.9tr and short term debt stood at Rs6.48tr.
The data further shows that external debt was recorded at $72.98bn on June 30 this year, out of which $61.36bn was public debt, Public Sector Enterprises (PSE) guaranteed debt stood at $1.27bn, PSE non-guaranteed debt was $1.48bn.
During the same period, scheduled banks’ borrowing amounted to $1.64bn, non-resident deposits stood at $1.09bn, private non-guaranteed $3.29bn, private non guaranteed bonds at $12m and debt liabilities to direct investors for inter-company debt stood at $2.85bn.
The PML-N government has so far been unable to succeed in bringing the debt to Gross Domestic Product (GDP) ratio to within statutory limits of 60 per cent.
The overall debt pile reached around 68pc which is a violation of Fiscal Responsibility and Debt Limitation Act 2005, which binds the government to keep the total public debt below 60pc of GDP.
According to official documents, in 1999 the country’s over debt and liabilities were recorded at Rs2.95tr of which domestic debt stood at Rs1.39tr and external debt was Rs1.56tr.
In 2013 when the PML-N government came into power the country’s overall debt stood at Rs14.32tr of which domestic debt was recorded at Rs9.52tr and external debt was Rs4.8tr.
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On DawnNews
Comments (92) Closed
Nov 20, 2016 07:26pm
68℅, this government is heading for distinction i.e 75℅
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Nov 20, 2016 07:28pm
Experienced team!!
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Nov 20, 2016 07:33pm
Once cpec gets operational pakistan's debt will increase threefold. U guys have taken loan beyond ur capacity. Look what China has done to sri lanka, chinese built hambantota port which has now turned into a white elephant n have forced sri lanka to sell 80% of the port to china.
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Nov 20, 2016 07:42pm
Love reading this article. Time to eat grass now.
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Nov 20, 2016 07:43pm
PMLn has an experienced team which has tackled well to reach the country's debt to 100% of GDP before 2018.
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Nov 20, 2016 07:47pm
Wow. This is too much of debt.
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Nov 20, 2016 07:50pm
Despite increase in debt to 68%, For this poor performance, Parliamentarians are compensated with additional perks and raise in salary. i wonder how the champions of democracy would justify it.
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Nov 20, 2016 08:04pm
Indiscriminate borrowing at high interest to match a country with 15 times high economy.
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Nov 20, 2016 08:10pm
That's why I don't care whether we live in a democratic system, autocratic system or monarch system. I live in Dubai it's the local monarch system which has taken Dubai and this country to next level.
Essentially it's the complete control of authority by one right man who has a vision in mind for the prosperity of his people by the least.
We need one right person on top followed by other similar persons as ministers who may have the ability to dictate most of the terms so they can rightly steer Pakistan in the right direction without any room for any sort of political scoring or other uncessary political hindrances whatsoever.
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Nov 20, 2016 08:11pm
68% debt GDP ratio does not bother me too much. Fiscal deficit does. Increase tax to GDP ratio by better compliance. But those, who are involved in corruption scandals, can't do that. What Pakistan needs is some honest persons running the show. There is none on the horizon.
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Nov 20, 2016 08:28pm
When there is no checks and balances this is bound to happen.
Can anyone realistically suggest how are we going to pay or bring it done.
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Nov 20, 2016 08:38pm
All we need to do is to retrieve our swiss bank accounts and the debts will be cleared
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Nov 20, 2016 09:28pm
Thanks to PML-N government.
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Nov 20, 2016 09:38pm
Some days ago this government won"Best Finance Minister in South Asia 2016" award by IMF and World Bank so we should not loose hope.The 'experienced' team will bring down the debt to 10% in 90 days.
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Nov 20, 2016 09:38pm
Once we have CPEC we will pay this off in a matter of days.
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Nov 20, 2016 09:40pm
Excellent insight by Dawn. Lets pray that Pakistan comes out of Debt cycle fast. To put things in perspective : Rs 2.2 trillion is Rs 2.2 Lakh crore.
In Other words , on a population of 22 Crore , every citizen is indebted Rs 10,000.
Or at least Rs 60,000 per family.
Well this may still me manageable provided the remittances deficit , exports slow down and CPEC yields desired result.
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Nov 20, 2016 09:41pm
I do not understand all this. When IMF's Christine Lagarde was here a few days back, she painted an extremely rosy picture and yet we are steeped above our heads in debilitating debts. Can't make any sense.
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Nov 20, 2016 09:41pm
You ppl need Modi
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Nov 20, 2016 09:49pm
Controlling fiscal deficit , slashing Defence budgets , increasing tax nets without harassing the common man are some steps which will help.
Personally I don't see any more war with India , so the arsenal can be maintained at current level. There is more threat from inside , if debt repayment eats up social welfare and growth budget.
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Nov 20, 2016 09:53pm
CPEC will solve all the problem
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Nov 20, 2016 10:13pm
Debt will have long deferred repayment schedule It is the interest burden putting pressure on resources which is always worrisome . So also resultant fiscal deficits .
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Nov 20, 2016 10:13pm
@sHAHID: What worries you in it? Let it be whatever, you are not to pay anything.
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Nov 20, 2016 10:13pm
So what if the National debt, liabilities cross Rs2.2 Trillion. Our ruler's bank accounts has climbed and they own big businesses and properties in Dubai, UK and Canada. Nothing will change when rich and famous are protected and they have no fear of punishment.
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Nov 20, 2016 10:26pm
When the Govt.and People of Pakistan will feel the joy of living a debt free life, they will make Pakistan a debt free country.There are the ways and resources available within our country.
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Nov 20, 2016 10:25pm
CPEC CPEC...Come fast...
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Nov 20, 2016 10:30pm
@Zubair Wrong. Future planning has taken Dubai to the next level - it also helps that its big brother Abu Dhabi has bottomless oil wealth to cover up for Dubai's reckless spending habits (remember that it was on the edge of financial collapse in 2009 till Abu Dhabi bailed it out). A lot of dirt poor African countries (and neighbouring Saudi Arabia) also have monarchs but they aren't doing too well.
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Nov 20, 2016 10:45pm
Thats the cost of one metro bus & few nonoperational power plants or perhaps just blame it IK dharnas for these losses.
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Nov 20, 2016 10:49pm
All those who plundered Pakistan should cough it up and be punished.
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Nov 20, 2016 10:59pm
Debt isn't a bad things per se. For instance if its for investments that will pay dividends, then why not right? For instance schools take time to reap benefits but its a good investment. PML has done a great job, PK now has a dysfunctional metro bus. Load shedding which was suppose to be gone after 1 year has been reduced by 1-2 hours...what else, houbara bustard licensing is going swell, PML has shifted banking from Panama to Cayman Islands. What else can Pakistanis ask for?
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Nov 20, 2016 11:01pm
Such a Corrupt League....
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Nov 20, 2016 11:03pm
Looks like Billions and millions have been used interchangeably (external debt and liabilities stood at$72.98Million)?
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Nov 20, 2016 11:11pm
Do I hear someone by the name of Imran Khan making fuss about corruption and bad governance and the public at large getting very irritated about it?
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Nov 20, 2016 11:13pm
Pakistan has many friends to help out of this debt....because friend in need id friend indeed.
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Nov 20, 2016 11:15pm
And when the time for repayment will come, NS with his royal family will vanish to foreign country to look after their offshore companies.
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Nov 20, 2016 11:33pm
We need Imran the last guy.
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Nov 20, 2016 11:55pm
DEBT! debt means less food for the poor. Debt means slavery for the people.
Debt means ride a motorway and stay hungry. PML = have mercy on your own souls if not on the people of Pakistan.
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Nov 21, 2016 12:02am
Welcome to Asian Tiger powerful domain.
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Nov 21, 2016 12:15am
Eventually this debt will be forgiven by lenders. That always happen.
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Nov 21, 2016 12:21am
Lol. Rooshan pakistan headed by thugs, money launderers and tax evaders ;).... Get loan and invest in metros, motorways and other illogical projects to get kick bag and then loot people through taxes.
I feel sorry for those who consider someone a leader who can't even read without having a piece of paper in hand. Ha ha
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Nov 21, 2016 12:29am
Wait till CPEC starts operation. All the debt problem will be solved.
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Nov 21, 2016 12:30am
Thanks to NS for making our generations indepted. well done!!
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Nov 21, 2016 12:33am
Thank God for the experienced team.
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Nov 21, 2016 12:46am
Well done NS government. You are our man, majority of the people elected you.
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Nov 21, 2016 12:56am
What a progress and performance!
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Nov 21, 2016 01:00am
@ali
Most other countries would look at raising their tax to GDP ratio and bring in austerity measures. Greece is a recent example.
Realistically speaking, this is not going to happen in Pakistan. When your rulers have their own money invested in safer places, thing like this don't keep them awake at night. A number of Arab autocrats ended up in places like saudi arabia. Pakistani democrats, Alhamdolilla, have their flats in London and dubai and all Pakistanis know about it.
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Nov 21, 2016 01:06am
Day by day situation is getting worse, government must adopt some policy reforms against tax thief.....
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Nov 21, 2016 01:09am
That's a achievement to be ashamed of as a nation. Wish the rulers could take something from this. Why do we own so much debt with all these loans taken by our rulers/politicians and nothing to show in terms of development? We have been given the dream that our CPEC would resolve all these things, I really doubt it would ever be with so-called friends like Chinese businessmen and Kashmiris who can't be bothered to join our country. Haven't we being sold too many dreams by our politicians for a long time? I am sure that none of my postings were ever posted in this forum, let me try my luck again, else there are other forums to vent my frustration about our rulers and love for my country.
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Nov 21, 2016 01:13am
@Harsh : Our government just gifted the port to the Chinese so we do not have the sell option
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Nov 21, 2016 01:14am
well for those who brought this corrupt government in power again and again, here is the present for you. What else could expect from them and if we are getting to the point where our entire country will be in debt and will not have enough to eat or feed our families. So again BRAVO my fellow Pakistani to elect these thugs over and over
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Nov 21, 2016 01:15am
Congratulations to Nawaz Sharif and his goons and to the people of Pakistan for voting for such a visionary leader.
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Nov 21, 2016 01:23am
@Harsh reason Sri Lankan port ran into trouble was because India kept obstructing Sri Lankan trade initiatives. Look what india has done to Bangladesh, Nepal, Sikkim, Bhutan. Simply ruined by bringing them to same poverty level as their own.
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Nov 21, 2016 01:26am
2016 National Debt (% GDP): Pakistan-68%, India-63%, Bangladesh-32%.
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Nov 21, 2016 01:46am
Can a country file bankruptcy? This is my genuine question, if any financial expert can answer?
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Nov 21, 2016 02:04am
Those who does not learn from history are bound to line it thru again!!
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Nov 21, 2016 03:24am
Many thanks to Mr Darr.
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Nov 21, 2016 03:29am
Thank you Nawaz bhai, thank you Zardari bhai and thank you rest of corrupt politicians.
And lastly thank you to NAB and supreme court for getting us to a point of no return.
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Nov 21, 2016 03:29am
Where is the progress to show for this 68% debt. Much of the debt is acquired to balance the budget. Until the tax system is revamped, corruption is controlled we will not be making progress. Common man is in pursuit of Roti, Kapra aur Makan. This has be an elusive dream for the masses to achieve. Where is the clean water, electricity, education, safety of the citizens? Until Honest and dedicated leadership comes in the suffering will not end
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Nov 21, 2016 03:49am
@Shri Dagar unfortunately the competition is just for military parity for a goal that is unattainable by any measure. There is no competition on human development parameters. Someone has commented that time has come to eat grass and it may just come true.
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Nov 21, 2016 03:48am
Let 'request' our 1% elite to bring back their black money tax free.
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Nov 21, 2016 03:49am
If rich and others pay their fair share of taxes to govt. and less corruption then this amount could have been less... of course this will not happen because of mindset of these rich people.
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Nov 21, 2016 04:07am
@Harsh , So true. China is desperate to use its idle funds, it messed up by creating surplus capacity within China, warehouses to warehouses, malls lying unoccupied, fancy high speed trains running without passengers and over capacity production factories. China's internal debt as on date is $11 trillion, Rs11,000,000,000,000.
Pakistan's politicians are not visionaries, clueless managers, who fell for the Chinese offer to provide loan and build roads, port and power plants.
Flip sides-they do not offer loans based on local needs but what they would like to invest in to reap the maximum benefits in the shortest time, projects that will need continuous dependence on China for spare parts, rehabilitation and maintenance, an assured business as long as their plant and machinery is used.
China's plant is below standard, an example is turbines that they have put in one of the African countries that is gourmandizing three times cubic meters that what was used earlier by Scottish turbines.
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Nov 21, 2016 04:15am
@SAT GOEL , bring British expat tax commissioner and deputy commissioners for next 5 years.
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Nov 21, 2016 04:29am
Wow! A master evidence in Panama papers. Cut it and present it in court.
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Nov 21, 2016 04:33am
I think we are still better off than countries like spain bulgaria etc. Because in those countries government and public both are in debt whereas in pakistan govt is in debt but public mostly is middle class or rich. I doubt pakistan is in worse condition than dubai at the moment where people are fleeing leaving their cars and debts behind
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Nov 21, 2016 05:08am
The money disappear in Panama in corrupt govt a/c
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Nov 21, 2016 05:21am
At least we have democracy in pakistan and this is the 2nd successive government to complete 5 years. Pakistan zindabad
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Nov 21, 2016 05:28am
Demonetization is a must
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Nov 21, 2016 05:49am
Internal and external borrowing to finance infrastructure projects bound to create huge liabilities driven by high interest
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Nov 21, 2016 06:14am
This government has stuffed the economy and the national security. Wait for the consequences.
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Nov 21, 2016 06:28am
Stop wasting money on weapons focus on development
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Nov 21, 2016 06:36am
68 % is too low, we should borrow more. Japan is 229 %.
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Nov 21, 2016 06:39am
Pakistan will be out of debt on the very same day, when Govt. and People of Pakistan will simultaneously think and act to feel the joy
of being debt free.There are the ways and resources available in Pakistan......It is the matter of 'Will' and 'Vision'.
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Nov 21, 2016 06:40am
Every next politician will we worst than the previous one. Pity on us, we were hopeful that Nawaz will we better than Zardari. They are same people with different names.
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Nov 21, 2016 06:44am
Well done, bravo Nawaz Sharif :)
Time to eat grass now....
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Nov 21, 2016 06:56am
@Zubair Dubai did not dig itself out of debt . When the problems are moderate to none even average leaders can seem like visionary . In smaller countries tight control over policy making surely helps. We need honesty and above all visionaries to not spend 25% of our GDP on a border which still can not prevent our soldiers from dying everyday or creating any additional safety for the people inside the borders . Remember the claims that nuclear Pakistan makes everyone safe and convential military expenditures were to be cut back . Military expenditures have only grown since going nuclear , no additional safety and the added cost of safeguarding those unusable nukes. No future for Pakistan if corruption and bigotry will keep the nation from truly rising .
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Nov 21, 2016 07:00am
Yet we continue to vote for them, what exactly has this government and the last one accomplished ? Our children and their children will be paying for what our government continues to borrow. At the end of the day, what our leaders can be proud of are motorways, metro buses and a bunch of plaques on the walls, as for the people of Pakistan, they are still dealing with load shedding, which basically means, as a country, we continue to struggle in the energy sector. No jobs have been created, our school system is a joke, drinking water is poison, our railways and PIA are a losing adventure,so as a Pakistani, what should I look forward to?
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Nov 21, 2016 07:04am
@SAT GOEL
Pakistan gets what the its people vote for and that is loot plunder and corruption of evry hue and shade, they make a choice between PPP and PML-N, both renowned for their lust and expertise in pillage and plunder.
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Nov 21, 2016 07:16am
The people of Pakistan are the biggest losers, big or small, our politicians are the biggest recipients of wealth. The way our country continues to struggle financially, our politicians continue to make big money. I believe, from the PM to the President, from MNA's to the parliamentarians, Senators to Chief ministers and everyone in between, their pays should be based on their performance. With so much debt, why do all these leaders still have jobs?
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Nov 21, 2016 07:22am
@ali, Don't forget accountability, there isn't any.
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Nov 21, 2016 07:25am
PTI 2014 Dharna and Islamabad lock down is responsible for this.
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Nov 21, 2016 07:31am
Thank you for pushing us further into debt, Mr nawaz shareef and Ishaq Dar.
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Nov 21, 2016 07:47am
We need to get rid of this corrupt to the core government before our country gets bankrupt. Please institutions with power do something before its too late.
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Nov 21, 2016 07:59am
how can cpac solve, because that is also a loan
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Nov 21, 2016 08:01am
Good Luck Pakistan!! Hope our politicians will make more passage of time, so I have no hope from them.
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Nov 21, 2016 08:53am
If 1,000 billion equals 1 trillion, the total debt figure should be Rs. 22 trillion according to the link provided. Otherwise, the domestic debt figures will need revision.
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Nov 21, 2016 09:07am
Bring in the looted funds kept in swiss banks and invested in property all over Dubai by these currupt politicians, beurocrates and generals and we can pay off all the loan.
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Nov 21, 2016 10:14am
A trillion is 1,000 Billion or nearly $10B. So the overall debt is about 22 Trillion or 22,000 Billion or nearly $220B. Out of this foreign debt stands at $72B, the rest is domestic.
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Nov 21, 2016 12:34pm
Despite increase in debt to 68%, For this poor performance, Parliamentarians are compensated with additional perks and raise in salary. i wonder how the champions of democracy would justify it.Love reading this article. Time to eat grass now.When there is no checks and balances this is bound to happen
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Nov 21, 2016 12:45pm
I bet this debt could be reduced by a few billions, if we remove the debt incurred by the Sharifs, with all the borrowing, and their shopping and travel expenses - all charged to the tax payers! I bet their credit card balances alone must run into millions each month!
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Nov 21, 2016 07:57pm
they are building more and more metros to hoodwink the masses...for God-sake have mercy on the people
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Nov 22, 2016 06:22am
Volume of debt is not important but debt sustainability is important. As long as debt is sustainable, country has no problem in raising more debt, however, raising debt for development activities is preferable instead of catering for recurrent expenditures. Pakistan is putting in resources to finance primary budget deficit and fiscal deficit that needs to be capped especially our expenses on defence and security must be curtailed to get the desired results. Finally, maturity profile of domestic debt needs to be enhanced for avoiding associated risks. Rest assured, this volume of debt is sustainable on domestic front, while external debt is vulnerable to external shocks, primarily, the remittance factor is of paramount nature.
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Nov 22, 2016 04:46pm
@Zak This is an incorrect information. Pls read the same at any forum for yourself.
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