Islamabad: The Ministry of Finance stated that Pakistan’s public debt is sustainable and its repayment capacity is still sufficient.
The Ministry of Finance said in a statement that the prudent economic policy resulted in the release of a basically balanced surplus in February this year after years of gaps.
The Ministry of Finance recognized the adverse effects of the Covid-19 pandemic on the economy and slowed down the government’s reform plan.
As a result, due to the sharp decline in growth during the last four months of the 2019-20 fiscal year and the increase in budget deficits related to Covid-19, the debt-to-GDP ratio increased.
When talking about the Global Economic Outlook Report released by the World Bank Group in June this year, the Ministry of Finance said that Pakistan’s economy has shown greater flexibility than its South Asian counterparts.
The Ministry of Industry and Information Technology stated that the government will significantly reduce the debt-to-GDP ratio in the medium term by increasing revenue and strengthening fiscal discipline.