Islamabad, Feb 1 : Pakistan's economy continued to be on a downward spiral as according to latest data by Ministry of Finance, country's debt rose 40 per cent in last 15 months. An official statement as quoted by Dawn said that the total debt and liabilities of Pakistan which amounted to Rs 29.879 trillion at the end of the fiscal year 2017-2018 crossed Rs 41.489 trillion at the end of September 2019, registering a Rs11.6 trillion or 40 pc rise.
The Pakistan government admitted on Friday that major violations of the Fiscal Responsibility and Debt Limitation Act (FRDLA) have led to a massive increase in the country's public debt and liabilities. The Pakistan economy has also been unable to maintain its fiscal deficit targets as the deficit for fiscal year 2018-19 amounted to a whopping Rs 3,635 billion or 9.4 pc of GDP. The report also urged the government to take immediate measures to reduce fiscal deficit and maintain total public debt within moderate limits going forward.
Profits of the State Bank of Pakistan (SBP) also witnessed a steep decline during FY 2018-19 as the central bank incurred heavy exchange rate losses on its external liabilities. The fiscal deficit was aimed to be maintained at 4 per cent (excluding foreign grants) of the Gross Domestic Produc t(GDP) for three years starting from the financial year 2018-19, after completion of this period it is aimed to be maintained at three and a half per cent of the GDP.
Long delays in renewing telecom licences, delays in the planned sale of state assets and weaker than anticipated tax amnesty are some of the factors which are being cited for the exaggerated fiscal deficit. (UNI)