A Senate panel expresses alarm as the public debt soars to Rs81.4 trillion.

Pakistan’s overall public debt, including both domestic and foreign components, has reached Rs. 81.4 trillion, according to a briefing given by the Senate Standing Committee on Economic Affairs on Monday.

The Committee was informed by the Director (Debt) of the Ministry of Finance that Pakistan’s overall public debt, which includes both domestic and international components, has reached Rs. 81.4 trillion, with over Rs. 21 trillion being ascribed to external debt.

Under the direction of Senator Saifullah Abro, the Senate Standing Committee on Economic Affairs met here on Monday.

According to the most recent census, he added, each citizen’s debt load is roughly Rs. 325,000.

The Committee was informed that government spending surpassing revenue is the main cause of the ongoing increase in the federal fiscal debt, with oil imports playing a significant role.

While the government routinely services domestic debt, it frequently does so by obtaining more loans, which was a crucial point made during the briefing.

Concerned, the Chairman asked how long the nation would have to rely on borrowing to maintain its financial stability.

Additionally, he urged the Finance Division to develop policies that are financially advantageous for the country and expressed worries about why the government is not taking into account the reductions in grants to lawmakers.

The Chairman also requested information about a loan of Rs. 65 billion that the State Bank of Pakistan had given to banks.

The Committee instructed the Finance Division to present debt liability information per province at the following meeting.

A proposal to allow wealthy persons the opportunity to voluntarily repay outstanding per capita debt was also reviewed by the Committee.

Senator Rubina Khalid stressed that any money gathered through such a system must be protected from abuse and used only for debt repayment.

The National Health Support Programme for Islamabad Capital Territory (ICT), Azad Jammu and Kashmir (AJK), and Gilgit-Baltistan (GB), which was first supported by the World Bank, was also explained to the Committee.

Due to its policy of not sponsoring projects in disputed territories, the World Bank later withheld funds for AJK and GB, restricting the project to ICT.

The initiative, which was started in late 2022, intends to improve the current healthcare infrastructure, human resources, and supply of necessary medications and equipment in rural areas, according to the Secretary of the Economic Affairs Division.

However, the Committee expressed worry that only one office has been formed thus far and that progress has been incredibly slow. The government has already spent USD 4.178 million in interest without making any real progress, it was further disclosed.

The Chairman called these initiatives a “question mark” for the country and called the Secretary of the Ministry of National Health Services to the following meeting.