September 06, 2022 (MLN): The total debt of the central government surged by 26.7% YoY to Rs50.5 trillion as of July 2022, compared to Rs39.9tr in July 2021, the data released by the State Bank of Pakistan (SBP) showed on Tuesday.
On a sequential basis, the central government debt has moved up by 5.7%, compared to Rs47.8tr recorded in June 2022.
The 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 that clocked in at Rs31tr, signifying a growth of 16% YoY, comprising Rs23.8tr long-term debt and Rs7.3tr short term debt while the remaining was external.
By the end of July 2022, the government’s long-term debt increased by 25% YoY when compared to Rs19.05tr recorded in the same period a year ago.
Similarly, the short-term debt inched down by around 5.7% YoY as opposed to Rs7.7tr in July 2021.
Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs17.3tr. Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs7.25tr, down by 6% YoY.
Borrowing through Naya Pakistan Schemes witnessed an increase of around 73% YoY to Rs53.2bn as of July 2022, compared to Rs31bn in the same month last year.
A breakup of the central government's external debt shows that nearly Rs19tr came from long-term loans while Rs267.6bn came from short-term loans.
