ISLAMABAD: The public debt of Pakistan to GDP ratio has been increased to 67.2 percent due to increased borrowing by the present government in its tenure which is 7.2 percent above the legal ratio of 60 percent to the GDP allowed by the parliament through legislation.
According to the data, available from the Ministry of Finance the total Public Debt to GDP ratio recorded at 67.2 percent while total Government Debt to GDP ratio stood at 61.6 percent at end of June 2017. The data further revealed that Pakistan witnessed a marginal increase of 1.4 percent (from 60.2 percent in 2013 to 61.6 percent in 2017) in its total government debt to GDP ratio during last four years while during the same period global debt to GDP ratio increased by about 8 percent.
Ministry of Finance further explained that developed countries like USA, UK and Japan also carry debt and maintain levels as high as 80 to over 100 percent of their GDPs, well over Pakistan debt to GDP levels. The Finance Ministry further said even in the developing country peer group, Egypt, Sri Lanka and India carry higher debt to GDP levels as compared to Pakistan.