Every citizen of Pakistan owes over Rs.57,000 in debt: Report
By ANIWednesday, February 2, 2011
ISLAMABAD - Every man, woman and child in Pakistan owes over Rs.57,000 to foreign and domestic lenders, according to the country’s Debt Policy Statement.
The statement said that Pakistan’s total debt and liabilities touched the Rs.10 trillion-mark in September 2010, while the federal government had borrowed over Rs.5 trillion from domestic sources and approximately the same amount from international lenders.
The country’s total registered population was 175 million, which means that each individual owes up to Rs.57,057, the Express Tribune reported.
As of June 30, 2008, Pakistan’s total public debt stood at slightly over Rs.6 trillion, but over the past two-and-a-half-years the country has added Rs.3.5 trillion to the total debt stock.
The Debt Office warns that inappropriate debt structure could become a source of vulnerability to the real economy and financial system of Pakistan.
It also cautions that low-cost foreign currency denominated debt is the biggest risk due to an unexpected currency shock.
On the other hand, heavy reliance on domestic debt may crowd out private sector credit demand besides pumping inflationary expectations. (ANI)
