Karachi: The Pakistani rupee successfully broke its seven-day losing streak against the US dollar after appreciating Rs0.24 in the interbank market on Tuesday.
At the end of the session, the local currency appreciated by 0.11% or Rs0.24 against the greenback to close at Rs223.42.
— SBP (@StateBank_Pak) November 22, 2022
The performance of the PKR suffered and continued its losing streak due to the stalled Pakistan-IMF talks for the resumption of the ninth review of the Extended Fund Facility (EFF). The Fund wants to first finalize the macroeconomic framework with Pakistan and then send its mission.
Pakistan’s debt reaches Rs62.4 trillion after 1Q of FY23
Last week, the SBP reported that Pakistan’s total debt and liabilities spiked to reach Rs62.4 trillion after the first quarter (July-September) of the current fiscal year, i.e. FY2023.
According to the provisional report by the central bank, compared to the same period last year, this year, the total debt and liabilities increased by 23.7%. During the three months of the first quarter of FY23, the debt counter jumped by Rs2.76 trillion to reach Rs62.46 trillion from Rs59.7 trillion.
The central bank, however, did not give the percentage of Pakistan’s total debt and liabilities in terms of the size of the country’s GDP.
The spike in Pakistan’s debt during the period under review is due to the jump in its external debt that jumped to Rs26.5 trillion – an addition of Rs6.8 trillion or 35% compared to last year.
Excluding the IMF loans, the federal government’s external debt increased to Rs18 trillion within one year. There was a net increase of Rs1.3 trillion in external debt, largely caused by the depreciation of the rupee and the country’s efforts to build foreign currency reserves via borrowing.