Pakistan’s growing debt and recent economic changes present a mixed outlook for the country’s financial future.
By 2030, Pakistan is projected to owe a massive Rs49,629 billion in domestic debt, according to a new government report on borrowing trends.
The report shows that these loans were taken through investment bonds, treasury bills, sukuk bonds, and savings schemes.
It also outlines a major repayment plan for the next five years, which includes both the original amount borrowed and interest payments.
In particular, 2024 will see the highest repayment, with Rs13,269 billion due. This will be followed by Rs12,723 billion in 2025, Rs7,684 billion in 2026, Rs4,758 billion in 2027, and Rs5,608 billion in 2028. In 2029, the government must repay Rs4,153 billion, and Rs1,434 billion in 2030.
Most of this debt—about 59%—comes from Pakistan Investment Bonds, with 22% from treasury bills, 10% from sukuk bonds, and the rest from National Savings Schemes and prize bonds.
On a positive note, Pakistan’s economy got a boost recently, as the current account showed a $75 million surplus in August, following a $246 million deficit in July. This improvement is mainly due to a significant increase in remittances from Pakistanis living abroad.
Experts view this surplus positively, pointing out that the rise in remittances has helped reduce the trade deficit, leading to a current account surplus.