ISLAMABAD- Pakistan's total public debt, which is already a whopping Rs 6.8 trillion, will see new heights in coming months, as the government is all set to borrow heavily from the world donors, violating the Fiscal Responsibility and Debt Limitation Act, 2005.     Finance Ministry sources told TheNation that by September 30, 2008, the domestic debt stood at Rs 3.4 trillion. A net addition of Rs 124 billion occurred during the first quarter (July-September) of the current fiscal year. On the external front, the debt burden increased due to more than 25 per cent reduction in the rupee value against the US dollar. Pakistan will have to allocate more resources to pay off the foreign debt due to rupee depreciation. The external debt and liabilities stood at US $ 46.7 billion or Rs 3.5 trillion. The rupee devaluation caused at least Rs 500 billion additional foreign debt even without borrowing a single dollar. The average exchange rate in the first quarter remained at 74.3 rupees to a dollar, shows the Finance Ministry data.    At a time when the government is slashing the development expenditure to reduce the fiscal deficit, it will spend a hefty amount of Rs 459 billion on servicing the domestic debt during the current fiscal year. Against an original allocation of Rs 318 billion, the government paid Rs 443.2 billion in servicing of domestic debt during the last fiscal year. In addition, Rs 64 billion will be paid for servicing of external debt and Rs 61.7 billion in repayment of foreign loan during the current year. Pakistan is trying hard to persuade the international donors for at least US $ 5 billion loan before June 2009, said the Finance Ministry sources. The likely new borrowings from the world community will for the first time push external debt and liabilities above US $ 50 billion mark. It is seeking US $ 3.5 billion from the World Bank, the Asian Development Bank and the Islamic Development Bank and DFID in the shortest span. The ADB has committed to give about $ 2 billion out of which it has already disbursed $ 500 million in September and another similar tranche is expected in the third quarter of the current fiscal year. The remaining $ 1 billion of the ADB will come in the next fiscal year. The Pakistani authorities are also negotiating with the International Monetary Fund in Abu Dhabi for at least another $ 5 billion. The sources said the total IMF loan would hover around $ 10 billion. The new loans are sought to address severe balance of payments problems. The country is having around US $ 7.3 billion in reserves out of which, the central bank share is less than US $ 4 billion, enough only for six weeks imports. In 2005, the Parliament passed Fiscal Responsibility and Debt Limitation Act. The major objective of this piece of legislation is to eliminate revenue deficit, gap between the current expenditure and the revenue, and reduce public debt. Under the law, the economic managers have to reduce total public debt to less than 60 per cent of the estimated total size of the economy by 2013. Secondly, the authorities are ought to reduce public debt by not less than 2.5 per cent of the total size of the economy till 2013. In 2003, when the bill was drafted, the debt-to-GDP ratio was nearly 75 per cent. The Finance Ministry sources disclosed that according to the initial conservative calculations, the total public debt has again shot up beyond 60 per cent of the estimated GDP by the end of the first quarter. The sources added the authorities feared that after adding up new expected loans the total public debt will remain around 70 per cent of the GDP.   "If a law has been made then you have to bring about structural changes to adhere to it", said Dr Qaiser Bengali. He said the more worrisome element was that the debt's tilt was shifting to foreign borrowing, which would be drastic in the longer run. The Economic Survey of Pakistan showed that by March 2008, the total public debt remained at 53.5 per cent of the Gross Domestic Product. The last government managed to bring down the public debt to below 60 per cent from 79 per cent of the GDP of the year 2000.