New Delhi, May 5 (IANS) Pakistan’s economy is under mounting pressure as its total debt and liabilities have surged to Rs 85 trillion over the past four years, which highlights a steep rise in fiscal stress amid limited structural reform, a report has said.
A report in The News Pakistan highlighted that the country’s debt and liabilities have increased from around Rs 55 trillion four years ago to Rs 85 trillion at present — an overall jump of nearly 55 per cent.
This translates into an average annual increase of about Rs 7.5 trillion, highlighting the scale of continuous borrowing, it said.
On a monthly basis, liabilities have reportedly risen by around Rs 625 billion, while on a daily basis, the accumulation stands at nearly Rs 20 billion.
The report noted that this persistent rise underscores the pace at which fiscal obligations are building up in the economy.
Moreover, the expansion in debt has not been matched by corresponding growth in productive assets or economic output that raised concerns over the sustainability of public finances.
The report highlighted that in the absence of meaningful reforms, debt accumulation continues to outpace economic efficiency gains, adding pressure on fiscal stability.
Moreover, a similar trend is visible in the power sector, where circular debt has increased from Rs 2.2 trillion to Rs 3.2 trillion, an increase of around 45 per cent in four years.
This suggested annual additions of about Rs 250 billion, with persistent inefficiencies, weak recoveries and continued losses.
State-owned enterprises (SOEs) also remain a significant burden, with more than 110 entities carrying liabilities exceeding Rs 30 trillion. These enterprises collectively incur losses of Rs 800 billion to Rs 1 trillion annually.
In addition, on governance and expenditure, Pakistan’s federal and provincial governments operate a fleet of around 85,500 vehicles, compared to just 86 used by the UK government.
Annual fuel expenditure stood at approximately Rs 114 billion or about Rs 9.5 billion per month, according to the report.
–IANS
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