Pakistan’s gross public debt has increased faster than its gross domestic product (GDP) in the last 20 years.
According to Arif Habib Limited, as of fiscal year 2022-23 (FY23), Pakistan’s gross public debt stands at Rs. 62.9 trillion (74.3 percent of GDP). This is a significant increase from debt of Rs. 3.7 trillion (56.1 percent of GDP) in FY23. The increase in debt has been witnessed at a compounded annual growth rate (CAGR) of 15.2 percent during the last two decades.
Over the last 20 years, Pakistan’s domestic debt has grown by a CAGR of 16.3 percent, reaching Rs. 38.8 trillion, while its external debt has increased by a CAGR of 13.8 percent during the same period.
The size of Pakistan’s economy has expanded to Rs. 84.7 trillion in FY23, compared to Rs. 6.6 trillion two decades ago, and has grown by a CAGR of 13.6 percent over the last 20 years.
Out of the total debt increase of Rs. 59.2 trillion over the last two decades, a substantial Rs. 37.9 trillion increase has occurred in the past five years.
Source: Pro Pakistani