The sources say that the borrowing will raise the total debt burden to Rs87,346 billion.
ISLAMABAD: (UrduPoint/Pakistan Point News-May 23rd, 2024) The International Monetary Fund (IMF) and Pakistan discussed a framework for new government borrowings, with concerns from both the finance ministry and the Washington-based lender about an increase in loans in the upcoming budget for the fiscal year 2024-25, the sources privy to the development said on Thursday.
The sources said that Pakistan might borrow an additional Rs10,433 billion from domestic and external sources.
“The borrowing will raise the total debt burden to Rs87,346 billion,” they added.
They also said that the domestic borrowing is expected to rise by approximately Rs7,636 billion, while external debt may increase by Rs2,797 billion in 2024-25.
“This will push the total domestic debt to Rs53,878 billion and overall external debt to Rs33,648 billion,” said the sources.
Previously, the government economic team estimated that external financing for the next fiscal year would be around $22 billion.
For the current fiscal year, sources predict domestic debt will reach Rs76,913 billion by June 30, 2024, due to high interest rates exacerbating Pakistan's complex debt repayment situation.
Meanwhile, external debt is anticipated to rise to Rs30,671 billion as Pakistan strives to revive its economy amidst record-high interest rates.
During ongoing talks, Pakistani authorities have shared a macroeconomic framework for the next fiscal year with the IMF, projecting a GDP growth rate of 3.7% and an inflation rate of 11.8%. However, the IMF projects a slightly lower GDP growth rate of 3.5% and a higher inflation rate of 12.7%, which is 0.9% above the finance ministry's estimate.
Earlier this week, the IMF and Pakistan commenced policy-level talks as cash-strapped Islamabad aims to secure another deal with the lender, while meeting the stringent conditions attached to it.
