ISLAMABAD July 30, 2024: According to the latest figures from the Ministry of Finance, Pakistan reported a primary surplus of PKR 953 billion for FY-2024, compared to a deficit of PKR 826 billion the previous year. This surplus amounts to 0.9 percent of GDP.
Markup payments increased to PKR 8,160 billion in FY-2024 from PKR 5,696 billion in FY-2023, registering a 43 percent growth. Debt servicing on domestic debt rose by 45 percent to PKR 7,164 billion, up from PKR 4,936 billion in FY-2023. Similarly, debt servicing on foreign debt increased by 31 percent to PKR 996 billion from PKR 760 billion the previous year. These increases are attributed to rising interest rates and an overall increase in debt stock.
However, the government has reduced the interest rate by 250 basis points over the past two months, which has a cumulative impact of PKR 1,150 billion.
