Full Version: The Debt Of Pakistan
Aslaam Alaikum. I was wondering if everyone on pakistani defence would like to talk about the debt which pakistan owes to foreign countries and companies etc. what i was wondering is how much external debt is pakistan in, also can u explain what it is and what government debt is. I heard from someone that pakistan debt is going higher and higher by year and although pakistan economy is improving and its GDP is going higher n higher but so much percent of GDP is spent on giving back loans and intrests rather than spending on education etc. It would be nice if people can show facts and figures, for example since 2001 how did pakistan debt go, is it going well or bad cz government saying pakistan moving in right direction, its getting this n dat. GDP is getting higher etc but if debt is getting higher then there is no point cz most of it is spent on loads. it would be nice if anyone could explain. thank u
Yes i also want to know.
How much Pakistan Owns from Other COuntries and Banks.
whats the total Amount.
How much Pakistan Owns from Other COuntries and Banks.
whats the total Amount.
QUOTE(ali786 @ Jan 30 2008, 07:31 PM) 
Aslaam Alaikum. I was wondering if everyone on pakistani defence would like to talk about the debt which pakistan owes to foreign countries and companies etc. what i was wondering is how much external debt is pakistan in, also can u explain what it is and what government debt is. I heard from someone that pakistan debt is going higher and higher by year and although pakistan economy is improving and its GDP is going higher n higher but so much percent of GDP is spent on giving back loans and intrests rather than spending on education etc. It would be nice if people can show facts and figures, for example since 2001 how did pakistan debt go, is it going well or bad cz government saying pakistan moving in right direction, its getting this n dat. GDP is getting higher etc but if debt is getting higher then there is no point cz most of it is spent on loads. it would be nice if anyone could explain. thank u
Hi Ali786,
I will try to answer all your questions over the weekend, when I have more time
but now I will leave you with some documents to read, which form a good background
http://www.finance.gov.pk/debtPolicy.pdf
http://www.sbp.org.pk/reports/annual/arfy05/Chp-6.pdf
http://www.sbp.org.pk/ecodata/pakdebt.pdf
Just found out that the latest debt statement for 2007-08 was posted on the Ministry of Finance website today
http://www.sbp.org.pk/ecodata/pakdebt.pdf
Total external Debt is $40 billion USD of which 38 Billion USD is government debt and $2 billion USD is private sector debt
This is money the government owes other foreign government, international lending institution (World Bank, ADB) and bonds holders
http://www.finance.gov.pk/Debt%20Policy%20Statement.pdf
UN date
UN data and Table 10
1980's (Zia era)
1980 Debt $10 billion - GDP 30 billion
1990 Debt $20 billion - GDP 52 billion
(increase in debt 100 %, increase in GDP 73%)
1990's (BB, NS era)
1990 Debt $20 billion - GDP $52 billion
2000 Debt $32 billion - GDP $70 billion
(increase in debt 60%, increase in GDP 35%)
2000's (Musharraf era)
2000 Debt $32 billion - GDP $70 billion
2008 Debt $38 billion - GDP $160 billion
(increase in debt 19%, increase in GDP 130%)
During the Musharraf the level of foriegn debt has increased by $6 billion, however in the same period the GDP has increase by $90 billion.
In the era of mass corruption in the 1990's, the debt burden was increasing faster than the increase in GDP, this meant that more and more resource had to be diverted to service this debt, rather than being invested in health care or education Luckily during the Musharraf the situation has been reversed.
Lets look at revenue collection
Table 1 Revenue collected
2000 - 513 billion (Rs)
2008 - 1476 billion (Rs) ( +190%)
The increase in revenue has allowed spending on education and healthcare to more than doubled in just 5 years.
http://www.finance.gov.pk/survey/sur_chap_.../04-Poverty.PDF
Table 4.10: Social Sector and Poverty Related Expenditures (Rs. in Billion 2001-02 and 2005-06)
Education 66.29 141.70 (+ 114%)
ii. Health 19.21 39.20 (+ 104%)
After many years of struggle, due to the economic turn around that has occured under musharraf, spending on development has started to over take spending on servicing dept
http://www.finance.gov.pk/pak_fis/june_2007.pdf
Table 3 2006-07
Servicing of domestic debt - 3.7 % of GDP
Servicing of foriegn debt - 0,6 % of GDP
Total - 4.3 %
Development expenditure - 5.0 % of GDP
QUOTE
what i was wondering is how much external debt is pakistan
http://www.sbp.org.pk/ecodata/pakdebt.pdf
Total external Debt is $40 billion USD of which 38 Billion USD is government debt and $2 billion USD is private sector debt
QUOTE
what government debt is
This is money the government owes other foreign government, international lending institution (World Bank, ADB) and bonds holders
QUOTE
I heard from someone that pakistan debt is going higher and higher by year and although pakistan economy is improving and its GDP is going higher n higher
http://www.finance.gov.pk/Debt%20Policy%20Statement.pdf
UN date
UN data and Table 10
1980's (Zia era)
1980 Debt $10 billion - GDP 30 billion
1990 Debt $20 billion - GDP 52 billion
(increase in debt 100 %, increase in GDP 73%)
1990's (BB, NS era)
1990 Debt $20 billion - GDP $52 billion
2000 Debt $32 billion - GDP $70 billion
(increase in debt 60%, increase in GDP 35%)
2000's (Musharraf era)
2000 Debt $32 billion - GDP $70 billion
2008 Debt $38 billion - GDP $160 billion
(increase in debt 19%, increase in GDP 130%)
During the Musharraf the level of foriegn debt has increased by $6 billion, however in the same period the GDP has increase by $90 billion.
QUOTE
but so much percent of GDP is spent on giving back loans and intrests rather than spending on education
In the era of mass corruption in the 1990's, the debt burden was increasing faster than the increase in GDP, this meant that more and more resource had to be diverted to service this debt, rather than being invested in health care or education Luckily during the Musharraf the situation has been reversed.
Lets look at revenue collection
Table 1 Revenue collected
2000 - 513 billion (Rs)
2008 - 1476 billion (Rs) ( +190%)
The increase in revenue has allowed spending on education and healthcare to more than doubled in just 5 years.
http://www.finance.gov.pk/survey/sur_chap_.../04-Poverty.PDF
Table 4.10: Social Sector and Poverty Related Expenditures (Rs. in Billion 2001-02 and 2005-06)
Education 66.29 141.70 (+ 114%)
ii. Health 19.21 39.20 (+ 104%)
After many years of struggle, due to the economic turn around that has occured under musharraf, spending on development has started to over take spending on servicing dept
http://www.finance.gov.pk/pak_fis/june_2007.pdf
Table 3 2006-07
Servicing of domestic debt - 3.7 % of GDP
Servicing of foriegn debt - 0,6 % of GDP
Total - 4.3 %
Development expenditure - 5.0 % of GDP
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