Islamabad, June 3(ANI): The cash-starved Pakistan government has no other option than to borrow from external as well as internal resources to run its expenditures, the country's latest economic survey report has indicated.
According to the Pakistan Economic Survey 2010-11, the country's external debt has increased by 3.6 billion dollars during the July-March period of the outgoing financial year 2010-2011, and totalled at 59.5 billion dollars by the end of March 2011.
Pakistan's external debt stood at 55.9 billion dollars in June 2010, which shows that it increased by 6.4 per cent only in a period of nine months.
Meanwhile, the public debt (internal debt) has enhanced by 1162 billion rupees in the first nine months (July-March) of the year 2010-11, reaching a total outstanding amount 10020 billion rupees- with an increase of 13.1 per cent.
The primary reason of the increase in public debt in July-March 2010-11 has been a sharp rise in local currency component, which accounted for 69.7 per cent of the total increase in total public debt.
This was primarily due to the slower disbursement from multilateral and bilateral donors and higher than budgeted fiscal deficit, The Nation reports.
Higher fiscal deficit and enormous slippages in the revenue and expenditures targets remained key problems during the July-March period of the year 2010-11.
According to the survey, Pakistan's domestic debt witnessed a sharp rise since 2006-07, with consequent build-up in the interest payments. (ANI)
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