Pakistan’s total export growth has managed to outpace its external debt in the past five fiscal years, according to latest data from the State Bank of Pakistan (SBP).
The country’s External Debt to Total Exports ratio has fallen to 253 percent in FY 2023-24, compared to its peak of 314 percent in FY20. This suggests growth in exports has remained higher in the last few years than growth in external debt, Topline Securities said in a brief statement.
Earlier, it was disclosed that Pakistan’s debt-to-GDP ratio fell to a 6-year low in the financial year 2023-24 to 70 percent, as nominal GDP has grown faster than debt driven by higher inflation.
SBP reported a 3.4 percent rise in the country’s total external debt and liabilities, which reached $130 billion by June 30, 2024, up from $126.142 billion last year.
Despite the growth in external debt, the external debt-to-GDP ratio came down from 32 percent in SPLY, due to slower growth in foreign currency borrowings. However, the external debt-to-export ratio remains high at 253 percent, although it has decreased from a peak of 314 percent in FY20.
