Loans Trend


Unanticipatedly, The volume of local debt owed by the federal government increased by Rs 825 billion during the first five months of the last financial year and brought the total debt to Rs 241.10 trillion. However, the trend of borrowing shows that the pace of borrowing during the first five months of the current financial year has been much slower than in the previous 12 months. A report analyzes the data released by the State Bank of Pakistan on loans, according to which the volume of domestic debt was Rs 214.10 trillion in November 2019, which increased by Rs 27 trillion in November 2020 to Rs 241.10 trillion. Increased to Rs. SBP data shows that from November 2019 to November 2020, local debt and liabilities increased by Rs 27.50 trillion. However, it increased by Rs. 11.47 trillion in five months, which is a reflection of the fact that the government has adopted a aggressive approach to borrowing during this period. It is also worth mentioning that in December 2019, the debt-to-GDP ratio rose to 84%, mainly due to the FBR’s increase in revenues and tight control over current expenditure.Pakistan became a member of the IMF in 1950 and borrowed for the first time in 1958. Since then, Pakistan has borrowed 21 times from the IMF, including 12 bailout packages. Before coming to power in 2018, Imran Khan used to call the financial assistance taken from IMF and other international financial institutions and friendly countries disastrous for the country’s economy. As chairman of the Pakistan Tehreek-e-Insaf (PTI), Imran Khan’s statement was well-received. Recalling, he used to say in his meetings that he would prefer suicide to going to the IMF but would never beg for a loan from anyone with a handkerchief in his hand.