DEBT BURDEN RISES TO OVER RS 11 TRILLION.
During the first two quarters of the current financial year, the total debt burden of Pakistan has soared to 11,054.7 billion rupees, which is an all time high. According to Economic Bulletin of Sustainable Development Policy Institute (SDPI) it was 10,769.8 billion rupees at the end of the first quarter, on September 30, 2010. Out of this huge amount, domestic debt stands at 6049.7 billion rupees and the repayment of interest is met through internal fiscal resources which are being diverted away from development. According to the report Pakistan's external debt has also risen considerably after 2007, which currently stands at US $58.4 billion and was US$ 40.3 billion in 2007. Much of this loan has been used for balance of payment support, which became critical in 2008.
The bulk of domestic debt acquired during the second quarter of the current financial year (2010-11) is managed through monetary expansion bringing the overall value of the Pak-rupee down. It has increased the overall stock of foreign currency debt. In a nutshell, the fiscal policy of the government is primarily responsible for the increase in debt burden.
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|Publication:||Pakistan & Gulf Economist|
|Date:||Apr 3, 2011|
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