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April 8, 2021
ISLAMABAD: The IMF has projected that Pakistan’s general government gross debt would peak to 87.7 percent of Gross Domestic Product (GDP) by end of the ongoing financial year 2021.
The IMF’s Fiscal Monitor released on Wednesday disclosed that Pakistan’s net present value of pension spending would witness upsurge by 11 percent of GDP over the next 30 years from FY2020 to FY2050.
This indicates that the pension bill has been ballooning at supersonic speed leaving no other option but to introduce reforms to avoid ballooning of this liability.
The health care spending change over the next 10 years from FY2020 to FY2030 will witness the change of just 0.1 percent of GDP. The net present value of healthcare spending over 30 years from 2020 to 2050 will witness a surge by 2.7 percent of GDP.
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