ISLAMABAD (APP) - The Senate Standing Committee on Economic Affairs on Monday briefed that Pakistan’s total public debt has reached Rs. 81.4 trillion, comprising both foreign and domestic components.
The Director (Debt), Ministry of Finance, briefed the Committee that Pakistan’s total public debt has reached Rs. 81.4 trillion, comprising both foreign and domestic components, with over Rs. 21 trillion attributed to external debt.
A meeting of the Senate Standing Committee on Economic Affairs was held here on Monday under the chairmanship of Senator Saifullah Abro.
He further informed that, based on the latest census, the per capita debt burden stands at approximately Rs. 325,000 per citizen.
The Committee was told that the persistent rise in federal fiscal debt is primarily due to government expenditures exceeding revenues, with oil imports being a major contributing factor.
An important point highlighted during the briefing was that while the government regularly services domestic debt, it often does so by acquiring additional loans.
Expressing concern, the Chairman questioned how long the country would continue to rely on borrowing for its financial sustainability.
He also raised concerns that why the government is not considering the cuts in grants to parliamentarians and urged the Finance Division to formulate policies that are financially beneficial for the nation.
The Chairman further sought details regarding a Rs. 65 billion loan extended to banks by the State Bank of Pakistan.
The Committee directed the Finance Division to provide province-wise details of debt liabilities in the next meeting.
The Committee also discussed a proposal suggesting that outstanding per capita debt be offered to affluent citizens for voluntary repayment.
Senator Rubina Khalid emphasized that any funds collected under such a mechanism must be strictly utilized for debt servicing and safeguarded against misuse.
The Committee was also briefed on the National Health Support Programme, initially funded by the World Bank for Islamabad Capital Territory (ICT), Azad Jammu and Kashmir (AJK), and Gilgit-Baltistan (GB).
It was informed that the World Bank later withdrew funding for AJK and GB, limiting the project to ICT due to its policy of not financing projects in disputed territories.
The Secretary, Economic Affairs Division, informed that the project, initiated in late 2022, aims to strengthen existing healthcare infrastructure, human resources, and provision of essential medicines and equipment in rural areas.
However, the Committee noted with concern that progress has been extremely slow, with only an office established so far. It was further revealed that the government has already paid USD 4.178 million in interest without tangible progress.
The Chairman termed such projects a “question mark” for the nation and summoned the Secretary, Ministry of National Health Services, for the next meeting.