The country's external debt and liabilities rose to historic level of $73 billion at the end of last fiscal year (FY16), mainly due to inflows from the IMF and massive increase in public debt. According to State Bank of Pakistan (SBP), the country's external debt and liabilities (stocks) posted an increase of 12 percent or $7.837 billion to reach $72.978 billion as on June 30, 2016 compared to $65.141 billion as on June 30, 2015.
The total stocks of debt and liabilities comprise public debt, Paris Club, Euro Sukuk Global Bond, IMF loan, foreign exchange liabilities, Public Sector Enterprises (PSE) guaranteed debt and non- guaranteed debt, bank borrowing, non-residential deposits, private sector guaranteed debt, non-guaranteed debt and debt liabilities to direct investors.
The detailed analysis revealed that public debt has major share in the external debt and liabilities. Out of total external debt and liabilities, public debt amounted to $ 61.357 billion, up by $ 6.683 billion in FY16.
Apart from net external inflows from International Financial Institutions (IFIs) and mobilization of US$ 500 million through issuance of Eurobonds, public external debt witnessed an increase on account of revaluation loss due to depreciation of US dollar against other major currencies.
During the last fiscal year, the IMF debt, which was also included in public debt, surged by 47 percent to $6.043 billion at the end of June 2016 compared to $4.103 billion in June 2015, depicting an increase of $ 1.94 billion.
PSEs debt went up by $264 million to $2.75 billion at the end of FY16, up from $2.482 billion at the end of FY15. With an increase of $3.4 million, the bank borrowing reached $1.638 billion. Private sector debt also shows an upward trend rising to $3.293 billion in June 2016 up from $2.996 billion in June 2015.
Similarly, during the period under review, debt liabilities to direct investors reached $2.853 billion, up by $151 million.
