Pakistan Ministry of Finance showed that the federal government’s burden was Rs 11.8 trillion higher than legally allowed limit set by parliament and that some targets fixed under the debt management strategy were also breached.
The cost of interest payments also reduced from USD 2 billion to USD 1.5 billion due to debt suspension initiative by the G20 countries. The government’s reliance on highly expensive and shorter-term foreign debt also further increased due to its decision to increase dependency on foreign commercial banks and Naya
The government’s reliance on domestic commercial banks also significantly increased, as the banks held nearly half of the government debt papers or Rs 12.8 trillion, according to the report.
