Pakistan’s external debt has grown by 38% as a result of the rupee’s 51% loss in value in a single year.
The country’s external debt climbed by Rs5,704 billion in a single year as a result of the rupee’s ongoing depreciation. Due to the huge depreciation of the currency, Pakistan’s external debt increased by 38 percent in just one year.
The State Bank of Pakistan reports that in January 2023 compared to January 2022, the country’s foreign loans grew to Rs5,704. In January 2023, the nation’s external debt totaled Rs20,689 billion, up from Rs14,982 billion in January 2022.
According to the State Bank, the value of a US dollar climbed from Rs176.74 in January 2022 to Rs267.94 in January 2023. According to the central bank, the value of the rupee has dropped by 51% in just a single year.
The bank reported that in just one year, the government’s debt, both domestically and abroad, had climbed by 30%. The government’s internal and external debt was Rs42,396 billion in January 2022 and reached Rs54,942 billion in January 2013 after seeing a 30% growth. In a single year, the government’s internal debt climbed by Rs6,842 billion. —NNI