Pakistan’s debt to GDP ratio fell to 72 percent in fiscal year 2021 from 76.6 percent in fiscal 2020, Ministry of Finance clarified last week dismissing proposition of an article previously published which highlights increase in the said ratio.

According to the latest published information, the country’s debt-to-GDP ratio is expected to fall to 67% of GDP by December 2021, according to a press release from the Ministry of Finance.

In real terms, public debt growth was about 3.3 percent of GDP in 2018–2022, less than 8.2 percent of total GDP between 2013 and 2018.

Pakistan is one of the few countries able to reduce its debt. Despite the significant impact of COVID on public finances

The change in outstanding public debt occurred mainly due to interest payments on accumulated debt over the past 10 years, the new exchange rate of external debt. and the amount of cash held by the government at the central bank

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