ISLAMABAD - Pakistan’s total public debt including both the external and domestic, continued to swell by 29.2 per cent to Rs six trillion during the current financial year ending June 30, 2012.

According to Asian Development Bank’s latest Asian Economic Outlook (AEO) Pakistan’s overall public debt has soared to an alarming level of 33.3 per cent of the GDP (Gross Domestic Product).

As per the break up given in the ADB’s Report Pakistan’s external debt did increase to $ 57.9 billion but it went down as a share of GDP to 27.05 per cent.

Treasury debt sales were concentrated in short maturities for most of the year, bringing the average maturity of domestic debt to only 18 months.

“The economy continues to be affected by structural problems, including a domestic energy crisis, a precipitous decline in investment, persistently high inflation, and security issues,” It said. The Report said, budget deficits remain high, driven by substantial subsidies and losses at state-owned enterprises, and tax revenue below target.

“The slow growth in recent years was exacerbated by widespread floods in current financial. Unless progress can be made in resolving these fundamental problems, the growth outlook will stay modest,” the Report added.