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 public external debt has crossed $20 billion (photo below).
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:
Pakistani nationality ranks second least valuable in the world
Pakistan’s global competitiveness – in 11 photos
Pakistan 11th strongest military in the world
Pakistan ranks 11th worst in Global Hunger Index
Nuclear warheads down worldwide, up in South Asia
Pakistan among top 10 global improvers in World Bank’s 2017 Doing Business rankings
Pakistan at rock bottom in Human Capital Index
Pakistan world’s 14th most fragile country
Pakistan ranks 5th in terrorism-affected countries list
Will Pakistan risk falling behind when S Asia ups economic game
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.
Have you seen CPEC & OBOR stories on this blog?
CPEC fact sheet: 2013-2017
16 CPEC projects in Balochistan, 8 in KPK: Chinese Embassy
Chinese Embassy shares progress on CPEC projects
3 false reports about CPEC in one day far too many?
40 CPEC projects in 4 photos & 60 seconds
CPEC gets 4-layer security as Gwadar to be weapon-free
China’s world-reshaping One Belt, One Road (OBOR)
How China overtakes the US economy
20 countries with highest public deb-to-GDP ratio 2016. Japan: 250%. Source: Statista/IMF.
Pakistan is now world’s 40th largest economy
Pakistan’s unprecedented successes in stock market
It’s the economy, stupid
Africa: Nigeria largest economy, China largest single trading partner
The World Bank, meet your challenger: China-led AIIB
Countries with highest global deb-to-GDP ratio. Japan and Ireland touching 400%. Source: RBS
The bight side of Pakistan economy
Harvard predicts Pakistan GDP to grow by 5% over next 10 years
Pakistan is the world’s fastest-growing Muslim economy: The Economist
Shanghai Cooperation Organisation admits Pakistan as member this year
Pakistan GDP set to grow by 5.3% by 2020: IMF
$10B TAPI natural gas pipeline to be operational in 2020
In a corruption-riddled world, Pakistan is better than one-third countries: TI
Pakistan petrol prices 18th lowest in the world
It’s the economy, stupid
Gross public debt as % of GDP. US, Canada, some European countries and Japan highest. Source: Actualitix.
Pakistan’s travel infrastructure
Mass-transit transport in urban Pakistan starting to get a facelift
Take a Metro bus from Pindi to Islamabad and pay 20¢
Multan gets its Metro bus service
Lahore awaits its Orange Line Metro Train
e-ticketing on Green Line train from Islamabad to Karachi
Karachi to get Green Line bus service by end-2017
Karachi may have Yellow Line bus service in 2 years
Total global debt until last year was: $60 trillion. Which country owns most of this debt? Source: Visual Capitalist
Understanding Pakistan Series
What to expect in Pakistan in 2017
Back to the future: Pakistan in 2050
Wali on Pakistan of future
Long Term Orientation in Pakistan: from Zero to 50 in 2 years
Pakistani culture through 6-D Model
Native languages in Pakistan
How future oriented are we?
How we messed up Pakistan: A series by Wali
Pakistan’s two value crimes no one talks about
Is Whatsapp your source of info? Welcome to Project Ignorance
World Debt-to-GDP ratio. Pakistan’s 64.8 percent comes in green. Will this be sustainable debt? It’s anyone’s guess.