Pakistan to Repay Rs. 49 Trillion in Local Debt by 2030, Report Reveals

By 2030, Pakistan is projected to owe Rs49.6 trillion in local debt, according to a newly released government report. This massive debt has been accumulated through a combination of Pakistan Investment Bonds, treasury bills, sukuk bonds, and national savings schemes.

The repayment schedule for the next several years is intense. The largest payment, amounting to Rs13.3 trillion, is due in 2024, followed by Rs12.7 trillion in 2025. Subsequent years will also see significant repayments, with Rs7.7 trillion in 2026, Rs4.8 trillion in 2027, Rs5.6 trillion in 2028, Rs4.2 trillion in 2029, and finally, Rs1.4 trillion in 2030.

Notably, Pakistan’s debt composition includes 59% from investment bonds, 22% from treasury bills, and 10% from sukuk bonds, while the rest comes from national savings schemes and prize bonds.

Despite this daunting repayment challenge, recent economic indicators offer hope. The country’s current account recorded a $75 million surplus in August 2024, a positive shift attributed to an increase in remittances. Experts are cautiously optimistic, noting that improved remittance flows may help stabilize the economy and mitigate the debt burden.