Pakistan's local, foreign debt snowballs to new high with PKR devaluation

Pakistan's external debt has increased by 38 percent due to a 51 percent decline in the value of the rupee in one year, reported 24NewsHD TV Channel on Wednesday.

Due to continuous devaluation of the rupee, the country’s external debt has increased by Rs5,704 billion in one year. 

The significant depreciation of the rupee led to an increase of 38pc in external debt in Pakistani rupees in one year. 

According to the State Bank of Pakistan, country’s foreign loans have increased to Rs5,704 in January 2023 as compared to January 2022. 

The country’s external debt has reached Rs20,689 billion in January 2023 as compared to Rs14,982 billion in January 2022. 

The US dollar increased from Rs176.74 in January 2022 to Rs267.94 by January 2023, the State Bank said.

A 51% decrease in the value of rupee has been recorded in one year, the central bank added. 

The bank said that the external and local debt of the government has increased by 30% in one year.

The local and external debt of the government in January 2022 stood at Rs42,396 billion while it reached Rs54,942 billion in January 2013 after registering a 30% increase.

The domestic loans of the government increased by Rs6,842 billion in one year. 

In January 2022, the local debt of the government was Rs27,413 billion. But in one year, by January 2023, the domestic loans of the government increased by 25 percent to Rs34,255 billion, the State Bank concluded. 

Reporter Ashraf Khan