Central government debt swells to Rs50.9tr in November 2022

January 06, 2022 (MLN): The total debt of the central government surged to Rs50.9 trillion in November 2022, compared to Rs47.8tr in June 2022, witnessing an increase of Rs3.2tr or 6.52% in 5MFY23, the data released by the State Bank of Pakistan (SBP) showed on Thursday.

On a sequential basis, the central government debt has decreased by around Rs752 billion, compared to Rs50.15tr recorded in October 2022 while on yearly basis, it posted a surge of Rs9.93tr or 24.2% against Rs40.97tr in November 2021.

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 Rs32.92tr, signifying a growth of 22.8% YoY, comprising Rs26tr long-term debt and Rs6.84tr short-term debt while the remaining was external.

By the end of November 2022, the government’s long-term debt increased by 24.4% YoY when compared to Rs20.9tr recorded in the same period a year ago.

Similarly, the short-term debt inched up by around 16.7% YoY as opposed to Rs5.79tr in November 2021.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs19.46tr, plunged by 29.73% YoY. Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs6.7tr, up by 17.47% YoY.

On the other hand, borrowing through Naya Pakistan Certificates has decreased by 3.36% MoM to 46bn as of November 2022, while on yearly basis, the same has increased by 15% compared to Rs40.8bn in November 2021.

A breakup of the central government's external debt shows that nearly Rs17.74tr came from long-term loans while Rs2291.6bn came from short-term loans.

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