Debt Crisis: Pakistan’s Financial Burden
Pakistan’s escalating debt crisis has reached a critical point, with each citizen now owing PKR 295,000 due to the excessive borrowing by the government. The Ministry of Finance reports a staggering total debt of PKR 71.24 trillion, marking a significant increase from the previous year.
The breakdown reveals that domestic debt has soared to PKR 47.160 trillion, while external debt stands at PKR 33.062 trillion, including a substantial IMF debt of PKR 2.33 trillion. The alarming rise in debt highlights the urgent need for economic reforms and prudent financial management.
With federal government bonds and Pakistan Investment Bonds comprising the bulk of domestic debt, the government faces the daunting task of managing this burden. The focus must shift towards revenue generation, expenditure control, and economic growth to alleviate the impact of the growing debt.
It is imperative for Pakistan to address its financial challenges effectively to ensure long-term stability and prosperity for its citizens.
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