Pakistan allocates Rs4,220 billion for interest payments in 1HFY24

WEB DESK: The government has allocated a substantial sum, amounting to Rs4,220 billion, for interest payments in the first six months of the current fiscal year.

This is against a total income of Rs6,854 billion, as reported by the Finance Ministry’s fiscal operation for July–December 2023–24.

The fiscal deficit of Pakistan for the same period has been recorded at 2.3 per cent of the GDP, or Rs2,408 billion.

A summary of consolidated federal and provincial finances reveals that the total revenue reached Rs4,469 billion, while the total expenditure was Rs9,262 billion during the first half of the current fiscal year.

Current expenditures witnessed a significant increase, reaching Rs8,565 billion, marking a surge of over 41  per cent compared to the corresponding period in the last fiscal year.

Debt servicing during July–December 2023 surged by 65 per cent, escalating from Rs2,573 billion to Rs.4,220 billion during the same period of the current fiscal year.

The non-tax revenue also demonstrated a remarkable increase, standing at Rs2,020 billion in the first six months of FY24. This reflects a substantial growth of 109 per cent compared to the non-tax revenue of Rs967 billion in the same period of FY23.

The primary balance during 1HFY24 reached Rs1,812 billion, exhibiting a significant rise of 104 per cent compared to the primary balance of Rs890 billion during 1HFY23.

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