In May, Pakistan’s federal government debt surged to Rs67.8 trillion, representing one of the most significant monthly increases on record.
The State Bank of Pakistan (SBP) reported this rise, noting that the debt grew by Rs1.73 trillion in just one month, equating to an average increase of Rs56 billion per day.
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Interestingly, during the last fiscal year, the Pakistani rupee gained strength against the US dollar and remained stable in the April-May period. This currency stability helped control the increase in external debt. Additionally, Pakistan’s low credit ratings prevented foreign commercial banks from offering new loans, further limiting the growth of external debt.
To summarise, Pakistan saw an unprecedented rise in federal government debt in May, hitting Rs67.8 trillion. The increase was particularly sharp in May, averaging Rs56 billion per day, despite the stability and even improvement of the rupee during this period.
