Pakistan’s Economic Woes, Daily Borrowing of PKR 30 Billion Projected Amid Rising Debt

The Ministry of Finance has announced that the federal government will need to borrow over PKR 30 billion daily to meet its expenditure requirements. This alarming projection highlights the severe financial strain facing the country as it grapples with escalating debt and rising inflation.

According to the Ministry of Finance’s three-year economic strategy, the federal government will be burdened with significant borrowing requirements in the coming years. The strategy outlines that in addition to transferring funds to provinces and servicing debt, the federal government will face mounting financial pressures. The total debt burden, including interest payments and transfers to provinces under the National Finance Commission (NFC) Award, is expected to exceed PKR 20 trillion.

For the upcoming fiscal year, interest payments alone are projected to reach PKR 10.3 trillion. The growing financial obligations will leave the federal government with only PKR 500 billion after accounting for debt servicing and provincial transfers.

The International Monetary Fund (IMF) has also raised concerns about Pakistan’s escalating debt levels.