According to a statement released by the State Bank of Pakistan, the government’s debt increased by PKR 907 billion in July 2023. As a result, the total government debt by the end of July 2023 stands at PKR 61,700 billion.
The statement from the Central Bank reveals that government debt increased by one and a half percent in a single month.
The breakdown of the government’s debt is as follows: domestic debt amounts to PKR 39,000 billion, while external debt is reported at PKR 22,073 billion.
This increase in government debt comes in the wake of rising concerns about Pakistan’s economic stability. Despite reports earlier this year that Pakistan’s foreign debt had decreased by $3.6 billion by March 2023, the value of the dollar has increased, causing Pakistan’s foreign debt to surge by PKR 6,000 billion.
