Govt domestic debt, liabilities surge by 27.74% YoY to Rs43.2tr in December

February 12, 2024 (MLN): The government's total domestic debt and liabilities have risen by 27.74% YoY to Rs43.2 trillion in December 2023, compared to Rs33.82tr in December 2022, the latest data released by the State Bank of Pakistan (SBP) showed.

On a sequential basis, the domestic debt and liabilities increased 4% MoM compared to Rs41.54tr in November 2023.

According to details provided by the State Bank of Pakistan (SBP), the larger portion of the debt was permanent debt, which totaled Rs30.89tr, signifying a growth of 29.66% YoY.

This comprised Rs30.29tr in federal government bonds, Rs474.9 billion in SBP's on-lending to the government of Pakistan against SDRs allocation, Rs382.6bn worth of prize bonds, and the remaining Rs2.8bn in market loans.

The floating debt surged by 35.94% YoY in November to Rs8.37tr compared to Rs6.091tr in the same period last year.

Market Treasury Bills comprised the major proportion of the floating debt and stood at Rs8.288tr in December 2023.

On the other hand, the government's unfunded debt fell by 7.86% YoY to Rs2.832tr in December 2023, primarily due to a significant drop of 7.4% in saving schemes, which amounted to Rs2.742tr compared to Rs2.961tr in the SPLY.

Foreign currency loans rose significantly as they clocked in at Rs378.3bn in December 2023, compared to just Rs9.5bn in December 2022.

Meanwhile on a sequential basis, they dropped by 1.16% MoM.

Borrowing through Naya Pakistan Certificates also rose by 8.23% YoY to Rs118.7bn in December 2023.

Conversely, on a sequential basis, it fell by 5.44% MoM in December compared to Rs125.5bn in November 2023.

Moving forward, the government's domestic liabilities fell by 4.56% YoY to stand at Rs611.6bn in December 2023.

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