ISLAMABAD - National Assembly Standing Committee on Finance and Revenue was informed on Thursday that Pakistan’s total public debt stood at Rs71.2 trillion as of June 2024. The National Assembly Standing Committee on Finance and Revenue met Thursday under the chairmanship of Syed Naveed Qamar, in Parliament House, Islamabad. The agenda included a briefing by the federal finance minister on the key topics, update on the IMF programme, debt profiling/management, mutual funds and national savings.
In light of the sensitivity surrounding the IMF programme, the initial briefing was held in-camera. The committee was briefed that IMF has called its Executive board meeting later this month after Pakistan received assurance from friendly countries on external financing issues. It was briefed that Pakistan would receive funds in installments from the IMF after its board approves the loan programme. The minister of state provided a comprehensive overview of public debt, revealing that as of June 2024, total public debt stood at PKR 71.2 trillion, comprising PKR 47.2 trillion in domestic debt and PKR 24.1 trillion in external debt.
The committee members raised pertinent questions regarding lending countries, loan conditions, and the composition of debts. The minister highlighted that major lenders included Saudi Arabia, Australia, China, and Russia, and informed the committee about the current status of foreign exchange reserves giving comfort and the government’s future debt management plan, underlining ongoing structural reforms and efforts to broaden the tax base.
While the committee appreciated certain measures, concerns were raised about recent tax reforms causing unrest among traders. It was resolved to hold a separate meeting aimed at fostering dialogue between traders and the government to address these issues. The agenda item on mutual funds was deferred due to the absence of the chairman of the Securities and Exchange Commission, leading the committee to express displeasure over taking this important forum non-serious and stressed the importance of engagement of the Heads of the Institutions with the committee seriously.
The director general of the Central Directorate of National Savings (CDNS) provided insights into the organization’s mission and financial health. With 370 centers nationwide and 3 million clients, the CDNS offers 14 savings products, including Defence Saving Certificates and Bahbood Saving Certificates. The committee emphasized the need for increased savings rates and the introduction of more saving instruments to encourage public savings, advocating for a strategic plan to address these concerns. The meeting concluded with a commitment to ongoing dialogue and collaboration between the government and stakeholders to enhance fiscal discipline and economic stability.