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Pakistan’s debt reaches Rs71.3 trillion, FinMin outlines reduction strategy


Pakistan debt

ISLAMABAD: Pakistan’s total national debt has reached Rs71.3 trillion, which amounts to 67.4 per cent of the country’s GDP, as reported by Federal Minister for Finance and Revenue, Muhammad Aurangzeb.

In a response to a question in the National Assembly, the minister explained that the debt is split between Rs24.1 trillion in external debt and Rs47.2 trillion in domestic debt as of June 2024.

He said that Pakistan plans to reduce its external debt gradually by maintaining a positive balance in the current account and boosting foreign exchange earnings.

Aurangzeb also highlighted a positive shift in Pakistan’s economic performance with the country’s current account recording a surplus of $944 million during the first five months of the current fiscal year, compared to a deficit of $1.676 billion during the same period last year.

On the export front, Minister for Commerce, Jam Kamal Khan, shared encouraging figures about the country’s citrus exports. Between July and December 2024-25, Pakistan exported 105,690.3 metric tonnes of citrus fruits, earning $30.9 million.

Afghanistan remains the largest market, importing 77,547.44 MT and generating $16.72 million, over 50 per cent of total citrus export revenue. The UAE and Indonesia also made substantial contributions, importing 9,173.09 MT and 6,384.01 MT, respectively.

Khan also reported that Pakistan’s mango exports were strong during this period, with the UAE importing 17,031 MT and generating $10.58 million, while the UK imported 4,783 MT, bringing in $17.97 million. These two countries were the leading importers of Pakistani mangoes.

Meanwhile, Minister of State for Finance, Ali Pervaiz Malik, informed the assembly that the government has devised a comprehensive plan to address the country’s undocumented economy, narrow its tax base, and move away from regressive taxation.

He said Prime Minister Shehbaz Sharif has approved a transformation plan for the Federal Board of Revenue (FBR), aiming to overhaul the tax system and improve capacity at the FBR and Customs.

Despite the discussions, the National Assembly session saw continued protests by PTI lawmakers who called for the release of Imran Khan.

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