• Thursday, June 4, 2020

Public debt up 5.14% to Rs33.42 trillion in July-Feb FY20

Discussion in 'Pakistan Economy' started by Pakistan Space Agency, Apr 8, 2020.

  1. Pakistan Space Agency

    Pakistan Space Agency SENIOR MEMBER

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    Public debt up 5.14 percent to Rs33.421trln in July-Feb FY20
    April 8, 2020

    KARACHI: Pakistan’s public debt rose by 5.14 percent to Rs1.635 trillion in the eight months of the current fiscal year, mainly due to increase in domestic debt accumulation, the central bank data showed on Tuesday.

    Public debt was Rs33.421 trillion at the end of February 2020, up from Rs31.786 trillion till end June 2019. Domestic debt increased 7.02 percent to Rs22.188 trillion at the end of February, while foreign debt rose slightly up 1.60 percent to Rs11.232 trillion.

    The growth in Pakistan’s overall debt stock remains up driven primarily by the government’s weak fiscal position, shortfall in tax revenue, higher interest payments incurred by the government due to monetary tightening, and rise in expenditures.

    Moreover, the increase in domestic debt in the period under review stemmed from long-term debt. The government relied heavily on the commercial banks’ expensive borrowing to meet its revenue-expenditure gap.

    Analysts said the government, along with higher expenditures, is also likely to take a significant hit on its revenues because of the shutdown of industries and also due to lower aggregate demand amid coronavirus outbreak.

    The Federal Board of Revenue (FBR) tax collection was short by Rs200 billion in March, 2020. Pakistan’s budget deficit is expected to shoot up to 9.0 percent of gross domestic product in FY20 and subsequently clock in at 8.0 percent of GDP in FY21.

    “Such extended period of high fiscal deficits, in our opinion, will leave long lasting implications on the economy of Pakistan, where financing of these fiscal deficits will result in higher government debt and subsequent increase in interest payments which will further augment the fiscal deficit, higher inflation, which will in turn put pressure on the exchange rate and subsequently on the current account balance, crowding out of the private sector, which in turn will hurt the real economy of the country,” according to a brokerage report.

    Analysts also said sharp depreciation in the domestic currency and pressure on the balance of payments could have negative implications for external debt in times ahead. However, the recent significant cut in interest rate is likely to help reduce the government’s cost of domestic debt.

    Moody's Investors Services, in a latest report said Pakistan would see a marked weakening in debt metrics because of large gross borrowing needs that raise interest payments when borrowing costs rise, and/or narrow revenue bases that push fiscal deficits wider when interest payments rise.

    https://www.thenews.com.pk/print/641010-public-debt-up-5-14-percent-to-rs33-421trln-in-july-feb-fy20
     
  2. Pakistan Space Agency

    Pakistan Space Agency SENIOR MEMBER

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    Pakistan Tehrik-e-Insaf's Baby DebtZilla turning into a little monster.
     
  3. AZ1

    AZ1 SENIOR MEMBER

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    Can be easily return just by selling nawaz looted money.
     
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  4. Pakistani Fighter

    Pakistani Fighter SENIOR MEMBER

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    Who is going to do it? Imran said he will bring back looted money. When will he?
     
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  5. AZ1

    AZ1 SENIOR MEMBER

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    When we get rid of these


    پاکستان دنیا کا واحد ملک ہے جہاں اربوں کھربوں کے چور ، ڈکیت ، منی لانڈرر ، بد عنوان ، قاتل، رشوت خور ، ملک کے غدار، اس ملک کی پارلیمنٹ اور اسمبلیوں میں اپوزیشن کی شکل میں بیٹھے ہوۓ ہیں ، اور بکاؤ ، غدار ، ملک دشمن ، کرپٹ ، ظالم ، ناانصاف لوگ ججوں اور وکیلوں کی شکل میں اس ملک کی عدالتوں پر راج کر رہے ہیں
     
  6. Mugen

    Mugen FULL MEMBER

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    You are a snake. Get our money back from your turd Nawaz Sharif and then talk.
     
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  7. Pakistan Space Agency

    Pakistan Space Agency SENIOR MEMBER

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    Pakistan Tehrik-e-Insaf has already added $15 billion of debt in the first 17-months of it's tenure and your asking for more?

    Ask Cheeni Chor to help out.
     
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  8. Archie

    Archie SENIOR MEMBER

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    Did Nawaz and Zardari loot 200 billion USD from Pakistan
    I doubt that, they may be responsible for 20 billion USD loot, not more
    I am pretty sure a lot of debt is due to mismanagement of funds
     
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  9. Path-Finder

    Path-Finder ELITE MEMBER

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    cheeni choor includes the tubbar you do jamadari for!!!
     
  10. jericho

    jericho FULL MEMBER

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    [​IMG]
     
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  11. blueazure

    blueazure FULL MEMBER

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    nawaz and zardari did corruption . OK


    but current state of affairs has nothing to do with it . this propaganda and shit memeing by PTI trolls here wont sell for long



    --------------------------------------

    1 . elephant in the room is state bank and its incessant orgy of money printing + raising interest rates . so now, you have a devalued currency which is expensive to borrow aka you will pile debt faster than ever ....

    2 .what little economic activity ( real estate etc) was there, is now shut thanks to excessive capital controls and hi taxes . ( cant blame zardari here, sorry ) . mind you, real estate and construction employed 20 other industries . ( and as i had anticipated, the govt eventually loosened restrictions and opened the sector but i doubt anyone is buying this u turn kool aid )


    3 .there is massive gold in riko diq, govt can simply put that in state bank collateral and give a measure of strength to PKR ( russia and china have massively hoarded gold to back their currencies and are now patiently awaiting the dollars demise , popcorns ready ) . but i wont be surprised to find another bombshell news that riko diq gold ( like sandak copper) was handed in a platter to chinese ,,

    https://www.rt.com/business/483518-russia-best-position-crisis/


    4. what we are witnessing is the same old story , economic hitmen and conmen ( aka reza baqir + JKT + khusro bakhtiyar) are simply following an agenda or busy filling their pockets .

    while real estate ( a middle class man's speculative play ground) is regulated and taxed to death, SUGAR cartel is given subsidy + tax breaks + allowed to export at will + raise local prices

    tabdeeli much?
     
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  12. Zibago

    Zibago ELITE MEMBER

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    They werent alone in it their entire setup benefited from shady deals and bad policies
     
  13. Sine Nomine

    Sine Nomine ELITE MEMBER

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    So,when Govt is going to look down into these issues.
     
  14. Zibago

    Zibago ELITE MEMBER

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    The foreign loan report is exactly that and that is exactly why ppp and pmln are investing on journalists
    '

    Wait for the corona crisis to end ppp and pmln dont know what they have landed into
     
  15. I S I

    I S I ELITE MEMBER

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    No worries. All the debt will be cleared before the Election day. Even if some how they failed to do so... Blaming patwaris for it is always an option.
     
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