KARACHI (Daily Point) — Pakistan’s debt has surged by a staggering Rs12.430 trillion in the past 12 months, as per statistics released by the State Bank.

The data reveals that the country’s debt escalated to Rs63.399 trillion by November 2023, marking a significant increase during the coalition and caretaker government period.

During this timeframe, the federal government borrowed Rs40.956 billion from local banks, while foreign loans amounted to Rs22.434 billion, contributing to the alarming rise in overall debt from November 2022 to November 2023.

The State Bank reported that in the initial five months of the current financial year (July to November 2023), the federal government’s debt surged by Rs907 billion. In comparison, the debt level stood at Rs50.959 billion in November 2022.

It is worth noting that a previous claim in November suggested an overall reduction in the country’s debt. The value of total debt reportedly decreased to Rs1.675 billion in just one month due to the strengthening of the rupee.

Two months ago, officials attributed the significant reduction in Pakistan’s gross debt over the last 12 years to the improved value of the rupee, as well as measures taken to curb dollar smuggling and black marketing. However, the recent data indicates a contrasting trend, showcasing the complexities of managing the country’s economic challenges.