Islamabad, Sep 1: According to the most recent data from the State Bank of Pakistan (SBP), Pakistan’s total export growth has managed to surpass the country’s foreign debt during the last five fiscal years. From a peak of 314 percent in FY20, the nation’s external debt to total exports ratio has dropped to 253 percent in FY 2023–2024. According to Topline Securities’ succinct statement, this indicates that growth in exports has continued to outpace increase in foreign debt over the past few years.
It was previously revealed that Pakistan’s debt-to-GDP ratio dropped to 70% in the fiscal year 2023–24, a 6-year low, as nominal GDP increased more quickly than debt due to greater inflation. The nation’s overall external debt and liabilities increased by 3.4%, according to SBP, from $126.142 billion to $130 billion by June 30, 2024.
Because foreign currency borrowings grew more slowly than external debt, the external debt-to-GDP ratio decreased from 32% in SPLY. The external debt-to-export ratio has dropped from a peak of 314 percent in FY20, but it is still high at 253 percent.
