Bilal Aslam

Jul 16, 2018

Let's start with a simple example,

In a particular exam, Student-A got 45 out of total 50 marks, and student-B got 60 out of the total 100 marks. So, who performed better??

Since, the total marks are different in the two cases, the true measure is "marks in percentage" where student-A got 90% marks, and student-B got 60% marks. Similarly, the total GDP of a country is keep changing every year. So, the true measure of total public debt of a country is Debt-to-GDP ratio, that is how much a country owed with respect to its GDP.

Pakistan's Debt-to-GDP ratio was increased from 60.2% in 2013 to 61.4% in 2018. Considering the massive development projects (including electricity generation projects of capacity more than 11,000 MW), the PMLN government was successful in maintaining the debt-GDP ratio. And, the credit of looking after the economy of Pakistan and its smooth functioning goes to Ishaq Dar, the finance minister of Pakistan from 2013 to 2017.

The following table shows debt to GDP ratio of some developed and developing countries.

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