Central government debt widens to Rs43.7tr by April

June 06, 2022 (MLN): The total debt of the central government rose to Rs43.7 trillion in April 2022, registering an increase of Rs5tr or 12.91% during the first ten months of the current fiscal year when compared to Rs38.70 reported in June 2021, the data released by the State Bank of Pakistan (SBP) showed on Monday.

On a sequential basis, the central government debt has moved up by around Rs709.28 billion, compared to Rs43tr recorded in March 2022 while on yearly basis, it posted a surge of Rs6.63tr or 18% against Rs36.84tr in March 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 Rs28.91tr, signifying a growth of 14.07% YoY, comprising Rs23.3tr long-term debt and Rs5.58tr short term debt while the remaining was external.

By the end of April 2022, the government’s long-term debt increased by 21.53% YoY when compared to Rs19.17tr recorded in the same period a year ago.

On the other hand, the short-term debt declined by around 9% YoY as opposed to Rs6.15tr in April 2021.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs17.05tr, up by 21.55% YoY. Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs5.53tr, down by 10.10% YoY.

Borrowing through Naya Pakistan Schemes witnessed an increase of 54% to Rs34.8bn as of April 2022, compared to Rs22.6bn in the same month last year.

A breakup of the central government's external debt shows that nearly Rs14.54tr came from long-term loans while short-term loans clocked in at Rs250bn.

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