Pakistan’s public debt jumped $12 bn in 2009-10

ISLAMABAD - Pakistan’s public debt ballooned by a staggering Rs.1 trillion ($12 billion) in fiscal 2009-10 that ends June 30 due to the rupee depreciating against the dollar as well as loans obtained from the International Monetary Fund, the World Bank and other foreign donors, a media report Tuesday said.

“The public debt in the first nine months (July-March) period grew by Rs.960 billion in the current fiscal. After including the IMF’s tranche of $1.2 billion in May 2010, the public debt increased by over Rs 1,000 billion during the fiscal,” The News quoted official sources as saying.

The country’s public debt swelled to almost Rs.9 trillion or 59.3 percent of the GDP in the fiscal.

The domestic debt stood at Rs.4,325 billion and foreign loans in rupee terms were at Rs.4,597 billion. The domestic debt in the first nine months grew by Rs 620 billion, while the external loans in rupee term increased by Rs.340 billion in 2009-10, totalling up to Rs.960 billion.”

“The loan obtained from the IMF in 2009-10 resulted in surging the net increase of Pakistan’s loan by Rs.202 billion in the current fiscal,” the sources said.

On the positive side, external loans reduced by $361 million due to the dollar strengthening against currencies like the yen and the euro.

“Pakistan has paid back $300 million to the IMF in the current fiscal out of the loan obtained by the previous government in the shape of the Poverty Reduction and Growth Facility (PRGF),” the sources said.