Pakistan’s total debts and liabilities increased to an all-time high of $73 billion – a net increase of $8 billion this fiscal year, according to the State Bank of Pakistan.
During the current 2013-16 tenure of PMLN government, the cumulative increase in external debt is $12 billion.
External-debt-to-GDP ratio has remained constant at 26% since 2012-13.
The government-debt-to-GDP ratio is touching 65% (64.8% to be precise).
The SBP debt statement by end of June 2016 is here. If you need, download a PDF of SBP debt statement.
This is really worrying.
Here are some other worries or indices on Pakistan:
Since my 29 August tweet about ‘51% Pakistanis hopeful of future’ went viral (nearly 400 retweets in two days), many tweeps and readers responded with TV screen grabs of our all-time high debt and questioned how I could be optimistic in the presence of such huge debt and if a possible repayment default could be a danger to national security.
As this blog does – gives you a perspective about things affecting Pakistan and the central issues regarding its future – here’s a perspective on public debt by other nations.
So if you are really worried about Pakistan’s debt, the graphics below may help you see the issue in a bigger perspective. It may calm your nerves and save you from panic.
High debt or low debt, we are on an irreversible path of becoming world’s 18th largest economy by 2050.
PS: Global debt levels have reached $152 trillion according to the IMF, equivalent to 225% of world GDP.
20 countries with highest public deb-to-GDP ratio 2016. Japan: 250%. Source: Statista/IMF.
Countries with highest global deb-to-GDP ratio. Japan and Ireland touching 400%. Source: RBS
Pakistan: The brighter side:
Gross public debt as % of GDP. US, Canada, some European countries and Japan highest. Source: Actualitix.
Total global debt until last year was: $60 trillion. Which country owns most of this debt? Source: Visual Capitalist
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