Pakistan’s national debt has continued to rise, and by the end of the last fiscal year, each Pakistani now owes nearly Rs302,000, a significant increase.
This figure reflects the country’s growing debt burden, as government efforts to keep the fiscal deficit under control have fallen short.
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According to the latest financial policy, the government’s budget deficit exceeded the legal limit, reaching Rs7.7 trillion, which is more than double the permissible amount.
The deficit amounted to 7.3% of the country’s GDP, against the legal requirement of 3.5%.
This increase in debt was due to several factors, including higher interest payments on loans and depreciation of the currency.
The per capita debt saw a rise of 11.3%, increasing by Rs30,690 from the previous year, as reported by the Ministry of Finance. This increase has led to an unsustainable growth in national debt, which has grown by 15% over the past year.
The financial report also highlighted that, despite the rising debt, inflation has decreased, and there have been no significant deficits in the current account. However, with the government facing increased debt obligations, it has been struggling to meet fiscal targets.
Looking ahead, the per capita debt is projected to continue rising, reaching Rs301,954 in 2024, placing greater strain on Pakistan’s economy and its citizens.