Pakistan Faces Rs49 Trillion Local Loan Obligation by 2030
A recent government document indicates that Pakistan is projected to owe Rs49 trillion in local loans by 2030.
By 2030, Pakistan is expected to accumulate an astonishing Rs49,629 billion in local debt, as highlighted in a recent government report on the country’s borrowing trends.
The report specifies that these funds were secured through various instruments, including investment bonds, treasury bills, sukuk, and savings schemes.
It also outlines a significant repayment plan for the next five years, encompassing both principal and interest payments.
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Notably, the year 2024 is projected to require the largest repayment, totaling Rs13,269 billion. This will be followed by Rs12,723 billion in 2025, Rs7,684 billion in 2026, Rs4,758 billion in 2027, and Rs5,608 billion in 2028. In 2029, the government will face a repayment of Rs4,153 billion, and finally, Rs1,434 billion in 2030.
A considerable share of this debt—around 59%—has been raised through Pakistan Investment Bonds. Additionally, 22% comes from treasury bills, while 10% is linked to sukuk bonds. The remainder of the debt is made up of funds sourced from National Savings Schemes and prize bonds.
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Recently, Pakistan’s economy received a significant boost, with the current account showing a surplus of $75 million in August. This positive shift is largely attributed to a record rise in remittances from overseas Pakistanis.
Data from the State Bank of Pakistan (SBP) revealed that the current account deficit in July was $246 million, making the surplus in August a notable turnaround. This change is anticipated to enhance stability within Pakistan’s economic landscape.
Experts have praised this surplus as an encouraging development, pointing to the increased remittances as a crucial contributing factor. An economist remarked, “The rise in remittances has played a vital role in offsetting the trade deficit, leading to a current account surplus.”
This trend underscores the importance of remittances in supporting the country’s economic health, especially in times of financial challenges. The surplus not only reflects the resilience of Pakistan’s economy but also indicates the potential for improved fiscal conditions moving forward. As remittances continue to flow in, they could serve as a stabilizing force, helping to alleviate some of the economic pressures facing the nation.
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