The writer in his article had mentioned three debt to GDP ratios to be applicable as at end of 2017, while arriving subjectively at his own GDP value as Rs 12,967 billion whereas the official figure is Rs 13,289 billion.
Cabraal claims that there is some discrepancy in published statistics on Gross Domestic Product (GDP) and Governments Debt to GDP ratio. While leaving for the relevant institution to clarify on the matters relating to compilation of GDP statistics, the General Treasury would like to place the following on record on the outstanding Debt to GDP ratio of the Government.
It is pity that Mr Cabraal as the then Governor of the Central Bank who was privy to this decision is now trying to manipulate the debt to GDP ratio by citing the public policy of non-inclusion of debt, held by SoEs in the governments balance sheet.
Miftah said singling out one indicator was also not fair, otherwise Japan's debt was almost 120pc of GDP while many developing countries had 70-80pc debt to GDP ratios and were still doing well.
That, he said, was the reason that the debt limitation law talked about debt to GDP ratio and not about absolute debt numbers.
The advisor stressed that it was important that the size of the economy grows faster than debt to GDP ratio which was generally the case in Pakistan as the GDP is expected to grow by 6pc this year and 7-8pc in the coming years.
Figure 5 and table 1 show the public debt to GDP ratios for the Czech Republic's debt adjusting projection.
In the fairly recent past both countries recorded rather modest public debt to GDP ratios, compared to the majority of developed European Union members.
The OECD debt to GDP ratio stood at 79.9 per cent in 2008, and was expected to stabilize at 111.1 per cent in 2014.
We model the paths of the public debt to GDP ratio and the primary balance to GDP ratio up until 2022, under three different projections.
The debt to GDP ratios presented in the original report calculated a constant GDP series (2006 base) as followsJune 2014: $7,945.4 million; June 2015: $7,858.6 million and June 2016: $8,413.8 million.
Following these corrections, public debt to GDP ratios are now estimated as follows: 76.1% for June 2014; 82.2% for June 2015 and 85.0% for June 2016.