Publication Date

10-26-2017

Description

First, let us begin by clarifying the definitions and concepts that are used frequently and have created a lot of confusion among the laymen’s mind. Pakistan’s total debt and liabilities (TDL) consist of public debt and private debt. Total stock of outstanding debt and liabilities on June 30, 2017 stood at 79% of GDP. Of this, Gross Public Debt accounted for 85% of the total outstanding or 67.2% of GDP. The remaining 15% is the private debt mostly to borrowers outside the country, for which the government has no fiscal obligation, but the SBP has to provide foreign exchange to service this debt. Within the gross public debt, the government’s share was predominant – almost 92% while the balance was owed by the public enterprises but guaranteed by the government. Borrowing from IMF is also included in gross public debt, although it is a liability of the SBP. The total debt and liabilities is made up of borrowings in Rupees – from SBP, banks, National Savings schemes, prize bonds, Sukuk etc. and borrowings in foreign currency – from multilateral institutions such as the World Bank, ADB, IDB, bilateral countries or international financial markets in the form of Eurobonds or Sukuk. The Rupee denominated borrowing is termed as Domestic Debt, while the foreign currency denominated borrowing is called External Debt.

Notes

Keynote address delivered at the 4th National Debt Conference organized by PRIME Institute at Islamabad on October 26, 2017

Download

Share

COinS