State Bank of Pakistan to Settle Rs2.59 Trillion Debt

The State Bank of Pakistan has released data indicating that the government intends to utilize a portion of its borrowing to settle existing debt totaling Rs2.59 trillion from May to July 2024. This move is projected to lead to a net rise of Rs2.69 trillion in total debt and liabilities during this timeframe. To put this into perspective, total debt and liabilities surged by Rs8.42 trillion (11.62%) in the initial nine months of the ongoing fiscal year, reaching a record high of Rs80.86 trillion by March 2024.

As the government gears up to address its financial obligations, it is crucial to monitor how this strategy will impact the country's overall economic landscape. With a significant increase in debt and liabilities, there is a need for prudent financial management to ensure sustainable economic growth and stability in the long run.