KARACHI: The country’s total debt jumped by 12 per cent to Rs27.07 trillion during the first seven months of this fiscal year, according to latest data released by the State Bank of Pakistan (SBP).

During the last 12 months the total debt, however, increased by 19.3pc to Rs22.69tr in January 2018.

The government has been borrowing heavily to meet its expenses due to slow growth in revenue collection during the period under review.

The domestic debt during the July-January period increased by 9.5pc; an increase of Rs1.559tr to Rs16.416tr.

On the other hand, total foreign debt increased by 32pc to Rs9.095tr from Rs6.894tr. The government’s external debt excludes the International Monetary Fund (IMF) loans to SBP for balance of payments support, foreign exchange liabilities but includes the IMF loan for budgetary support.

The increase also indicates the appreciation of dollar against the local currency.

Published in Dawn, March 12th, 2019