Topic

:
Pakistan,a Historical critical re
Scenario of Pakistan
Submitted to:
Mam Asma
Submitted by:
Mehreen Shehzadi (
Areeba Sajid (ECON
 Outlines:
• Definition
• National Debt of Pakistan
• Historical critical review of Pakistan’s
• External Debt
• Current Debt Scenario of Pakistan

Definition:
Debt is something one party owe a
and individuals often take on debt
not afford without it. Debt can be s
date or revolving. Consumers can b
credit, including credit cards.
 Internal and External Debt of
a Historical critical review, Current Deb
of Pakistan
bmitted to:
m Asma
bmitted by:
reen Shehzadi (ECON63F23
eba Sajid (ECON63F23R018)
nes:
ion
al Debt of Pakistan
cal critical review of Pakistan’s Debt
al Debt
t Debt Scenario of Pakistan

nition:
mething one party owe another, typically mo
duals often take on debt to make large purch
without it. Debt can be secured or unsecure
volving. Consumers can borrow money throu
uding credit cards.
National Debt o
national debt of Pakistan, or sim
debt,or unpaid borrowed funds c
which includes measurement as
outstanding treasury bills (T-bills
government.
Pakistan is accumulating Rs14 b
expenses, resulting in a significa
external debt, which now stands
The terms ‘budget deficit’ and ‘na
federal government budget balan
cumulative amount of debt. A defi
surplus year decreases the debt a
According to data compiled from
Bank, UNICEF, Economic Survey,
UNAID, and SBP, Pakistan has sec
countries with the highest extern
debt places Pakistan among the 7
Debt Service Suspension Initiative
The country is now faced with t
several pressing issues. These
debt, managing the inefficient
a rapidly growing population, c
rates, and addressing the inade
facilities.
The economy is also being sign
and the negative impact of pub
Particularly concerning is Pakis
to range from Rs1200 to 2500 b
its annual budget. These issues
for Pakistan’s economic stabilit
Historical critical re
Debt:
In 2008 when Pakistan Peoples
election, Pakistan’s debt was R
135% in the next five years of P
15,096 billion in 2013 Majority
domestic debt in which externa
percent, from US$42.8 billion in
PPP government was dependen
lending to meet the needs of th
debt increased to 64 percent o
percentage of GDP decreased f
percent
After 2013 Pakistani general electio
During their rule of five years, Paki
US$52.4 billion to US$75.3 billion, a
due to the China-Pakistan Economi
from China and all contracts award
consequent high imports from Chin
to China), and also Sukuk bonds.
After 2018 Pakistani general electio
During his rule of 3 years still today
from US$75.3 billion to US$110.6 b
 The
the total public
ment of Pakistan,
e currently
ued by the federal

meet its
mestic and
 ly refer to the
, not the
e debt, while a
eived than spent.
ch as the World
es Federation,
mong the top 10
o $127 billion. This
the World Bank’s
nge of addressing
escalating national
rces, dealing with
unemployment
education

the energy crisis

.
hich is estimated
arly equivalent to
nsiderable hurdles
istan’s

on the
ch increased by
came Rs.
debt was in
increased by 22
billion in 2013
International
penditure.Total
rnal debt as a
to 23.4
me to power.
ncreased from
0 percent, mainly
loans were taken
ompanies, the
significant exports

to power.
ebt increased
35.3 billion USD.
Category

A:Public External
Debt
1. Government external debt

a. Long term(>1year)
. Paris club debt
ii. Multilateral debt (i.e. World Bank,
Asian Development Bank, Islamic
Development Bank)

iii. Other bilateral debt (i.e. China)

iv. Eurobonds and Sukuks

v. Commercial loans/credits (from
Chinese banks)

vi. Local Currency Securities

(Pakistan Investment Bonds (PIBs))
vii. NBP/BOC deposits/PBC
viii. Naya Pakistan Certificates
Amount (in million USD)
99,700.4

80,165.4

80,066.1
7541.1
38,813.6

19,644.1

7800.0
5611.3

3.5

24.1
628.3
Category
b. Short term (<1 year)

i. Multilateral
2. IMF debt
a. Federal government

b. State Bank of Pakistan

3. Foreign exchange
liabilities
a. Central bank deposits

b. Other liabilities (SWAP)

c. Allocation of SDR1
Amount (In million USD)
99.3

99.3
7596.3
5069.3

2527.0

11938.6

3700.0

4271.0

3966.6
Category Amount (in million
USD)
B. Public sector 78691.1
enterprises (PSEs)
1. Guaranteed debt 7014.9

a. Other bilateral 6532.5

b. Commercial loans 482.4

2. Non-guaranteed debt 854.2

a. Long term (>1 year) 48.6

b. Short term (<1 year) 305.6

c. non-guaranteed 500.0
bonds
Banks
1. Borrowing

a. Long term (>1 year)

i. Private sector

b. Short term (<1 year)

i. Public sector

ii. Private sector

2. Nonresident deposits (LCY &

FCY)
a. Public sector

b. Private sector

3. Other Liabilities
6637.8

3661.7

1300.0

1300.0

2361.7

90.6

2271.1

2736.0

101.2

2634.8

240.1
Category Amount (in million
USD)
D. Private Sector 12276.9

1. Non guaranteed debt 12276.9

a. Loans 9298.1

i. Long term (>1 year) 9129.0

ii. Short term (<1 year) 169.2

b. Trade credits 2343.0

c. Other debt liabilities 635.0

E. Debt liabilities 4674.9

to direct investors
– Intercompany
debt
Category Amount (in million
USD)

Total external 131,159.1

debt
Public external debt – 87758.2
excluding foreign
exchange liabilities

Public external debt 107,761.3

including PSEs
 Current Debt S
Pakistan:
As of June 2023, Total Public De
estimated to be about Rs.
62.881 trillion/US$223.86 billion
domestic product (GDP) of Paki
24.309 trillion is owed by the go
and about Rs. 1.67 trillion is ow
(PSEs)
Similarly, as of October 2021, ex
around US$121.75 billion.Pakista
Club, US$33.1 billion to multilate
International Monetary Fund, and
bonds such as Eurobond, and Suk
debt which is estimated around U
owed to China due
to China-Pakistan Economic Corr
Pakistan is facing a “huge extern
with China, Saudi Arabia, and the
additional support. The IMF is see
secure $7 billion for debt repaym
financing, and increasing foreign
between Pakistan and the IMF we
the credibility of the government
foreign loans. Despite some agre
measures, there are still outstand
expressed concerns about the go
fulfill past commitments.
(The now former) Foreign Ministe
Pakistan asked the International
conditions of its bailout package
victims from rising prices.
IMF urged Pakistan to hike its gen
18% in an effort to bolster revenu
costs are expected to surge to a
fiscal year. The IMF demand was
its revised
macroeconomic projections show
rising to 29% and economic grow
lead to higher unemployment an
debt-driven rising prices, food ins
burden add to Pakistan’s other ch
running above 38 percent annua
experiences a significant depreci
reserves dwindle, the nation is fa
crucial goods such as food, which
stampedes at distribution center
Pakistan about the country’s abil
obligations.
Pakistan boasts one of the world’
has procured a substantial sum o
financial institutions to fulfill its fi
borrowing pressure has diminishe
reserves and resulted in the
devaluation of its currency.
bt Scenario of
ublic Debt and Liabilities of Pakistan is
Rs.
86 billion which is 74.3 percent of gross
) of Pakistan.About Rs.
by the government to domestic creditor
on is owed by Public Sector Enterprises

021, external Debt of Pakistan is now

.Pakistan owes US$0.3 billion to Paris
multilateral donors, US$7.4 billion to
und, and US$12 billion to international
and Sukuk. About 15% of the external
around US$17.1 billion (6.15% of GDP) i

mic Corridor.
e external financing gap” of $4 billion,
and the UAE expected to provide
MF is seeking to fund its program and
repayment, current account deficit
foreign exchange reserves. The talks
e IMF were delayed due to concerns ove
ernment’s assurances and the reliability
me agreement on reform actions and
outstanding issues and the IMF has
ut the government’s ability to
n Minister Bilawal Bhutto Zardari of
national Monetary Fund to soften the
ackage to help the country protect floo
.
e its general sales tax rate to at least
er revenue. The country’s debt servicing
rge to a high of Rs5.2 trillion in the curre
and was made as the government share

ons showing inflation

mic growth rate slowing to 1.5%, which
ment and poverty in the country and
food insecurity, and a growing debt
other challenges and no doubt Inflation
t annually.As Pakistan’s rupee
depreciation and its foreign exchange
tion is facing challenges in importing
d, which has even resulted in tragic
n centers. This has raised concerns with
ry’s ability to meet its debt

e world’s highest debt-to-GDP ratios an

al sum of funds from international
ulfill its financial requirements. This
diminished the nation’s foreign exchang
the
cy.