It was reported that Pakistan’s Public Debt stood at Rs. 40 trn in July 2021. Public debt rose by 3%, Rs. 1.17 trillion, to touch Rs. 39.9 trillion in end July (last: Rs. 35.6 trillion).
The largest increase in debt came from domestic debt, which increased by 2.13% to touch Rs. 26.8 trillion; foreign debt increased by 4.9% to Rs. 13 trillion. Budget deficit as a percentage of GDP was 7.1% in FY21 (FY20 8.1%).
The GOP had a primary budget deficit of Rs. 654 billion (last: Rs. 757 billion). Most of the budget was / is financed through domestic borrowing. Greater internal revenues through tax are expected to help alleviate the deficits and plug many holes, however the tax authorities are still struggling to create a greater tax reach, despite growth in tax payers and tax collected.
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