Central govt debt rises to Rs76tr in May

July 04, 2025 (MLN): The total debt of the central government went up by 12.27% YoY to Rs76.05 trillion in May 2025, compared to Rs67.73tr in May 2024, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt rose by 1.48% MoM compared to Rs74.94tr in April 2025.

The year-on-year increase in debt burden is primarily attributed to borrowing from domestic and foreign sources to cover the fiscal deficit.

As per details made available by SBP, the larger portion of the debt was domestic and stood at Rs53.46tr, comprising Rs45.26tr long-term debt, Rs8.14tr short-term debt and the remaining Rs64.19bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 15.9% YoY and on a sequential basis a increase of 1.78%

By the end of May 2025, the government’s long-term debt increased by 23.95% YoY to Rs45.26tr as compared to Rs36.52tr recorded in the same period a year ago, while increasing 2.55% MoM.

Conversely, the short-term debt fell by -14.56% YoY to Rs8.14tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs35.24tr, Up by 27.19% YoY and 2.68% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs8.04tr, Down by 14.9% YoY and 2.36% MoM.

Borrowing through Naya Pakistan Certificates has declined by 26.05% YoY to stand at Rs64.19bn in May 2025.

Comparison on a monthly metric shows that in May, the government borrowed 3.44% more through these certificates compared to Rs62.05bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs22.38tr came from long-term loans while Rs201.15bn came from short-term loans.

Copyright Mettis Link News