Each Pakistani owes more than Rs127,000 as our national debt has appreciated by more than a fifth in a year.
The national debt stands at Rs 26,452 billion or $190 billion according to the statistics till November 2018. State Bank of Pakisatn released this data on Monday.
This is 21% higher than what we owed to the world and other lenders almost an year back- right under the debt.
The government at present is facing double loss- On the international front, for every dollar we spend two, which results into a huge trade deficit. Locally, the revenue generated by the government is not sufficient since it is much smaller than the expenses we have.
this has left government with completely empty treasury and no money to spend on essentials and on development of schools, hospitals, roads and dams.
To bridge the gap between the budget deficit of Rs 2.12 Trillion and trade gap of $18.9 billion, we are relying on domestic and foreign loans.
Since, Novemebr 2018 the foreign debts has rose to Rs9,129 billion which is $65 billion while the domestic debt is Rs17,322 billion, this is to be paid by Pakistanis through taxes from their incomes or purchase of certain things.
More than 60% of the money Pakistan borrowed from foreign institutions and government last year was paid to avoid bankruptcy and to sustain the foreign reserves high.