Pakistan pays Rs 7,500 billion as interest on its debts in three years

• Public debt increased by Rs 14,906 billion during the last three years

ISLAMABAD, Pakistan: The Minister for Finance and Revenue has told the Senate that Pakistan has paid Rs 7,460 billion as interest on its debt during the last three years.

Replying to a question by Senator Mushtaq Ahmed, the minister told the Upper House of the Parliament in writing on Friday that the total public debt was increased by Rs 14,906 billion during the last three years, and out of which 50% (Rs 7,460 billion) was due to interest payments.

The minister told that the incumbent government is taking necessary steps for ensuring fiscal discipline and consolidation, stabilizing the economy, and accelerating growth.

The finance and revenue minister told that the government debt is on a firm downward trajectory, where the debt to GDP ratio has decreased by 4% during the Fiscal Year (FY) 2020-21 and the government expects that this ratio will decrease further by 2-3% during the ongoing fiscal year over the medium-term.

The House was told that the government’s objective is to ensure a gradual reduction in the fiscal deficit which would subsequently reduce the Country’s reliance on additional debt.

The details of domestic and external and year-wise increase from June 2018 till August 2021 as follows;