Finance Ministry rejects Rs20 billion daily debt ...

Summary

• According to the ministry, government debt fell from 75 percent of the country’s gross domestic product at the end of financial year 2022 to 23 to 68 percent at the end of financial year 2025 to 26.
• Government debt increased by around 26 percent in the financial year 2022 to 23, but growth slowed to 7.7 percent in the financial year 2025 to 26.
• Public sector external debt fell from 33 percent of GDP in financial year 2022 to 23 to 23 percent by the end of financial year 2025 to 26.

AI Generated Summary

Islamabad:  The Ministry of Finance has rejected claims that government debt increased by Rs20 billion per day under Prime Minister Shehbaz Sharif, calling the report incomplete and warning that it could give a misleading picture of Pakistan’s financial position. The ministry says the country’s debt burden has actually fallen in relation to the size of the economy, debt growth has slowed to its lowest level in two decades, and the cost of paying interest and other debt charges has declined.

In its clarification, the ministry said that simply dividing the increase in total outstanding debt by the number of days does not accurately show how much new borrowing took place or whether the country’s ability to manage its debt has improved.

According to the ministry, government debt fell from 75 percent of the country’s gross domestic product at the end of financial year 2022 to 23 to 68 percent at the end of financial year 2025 to 26. The debt to GDP ratio compares government debt with the total value of goods and services produced by the economy. The ministry says this measure provides a better understanding of the country’s ability to carry its debt than looking at the nominal amount alone.