Central govt debt falls 1.1% to Rs69.6tr in Sep

November 11, 2024 (MLN): The total debt of the central government has decreased by 1.1% or Rs792.1 billion to Rs69.57 trillion in September 2024 compared to last month.

That was the first decline since February and the largest fall since September last year, data released by State Bank of Pakistan (SBP) showed.

As a percentage of Gross Domestic Product (FY25B), it dropped to around 56%, lowest level since May 2023.

Meanwhile, on a yearly basis, the central government debt has increased by 11.7% compared to Rs62.29tr in September 2023. The increase 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 Rs47.54tr, comprising Rs36.23tr long-term debt, Rs11.22tr short-term debt and the remaining Rs84.7bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a fall of 1.7% from last month

By the end of September 2024, the government’s long-term debt decreased by 2.9% MoM to Rs36.23tr.

Conversely, the short-term debt rose by 2.4% MoM to Rs11.22tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs27.13tr, down by 4.5% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting Rs11.14tr, up 2.4% from last month.

Borrowing through Naya Pakistan Certificates jumped 5.9% MoM to stand at Rs84.7bn in September 2024.

A breakup of the central government's external debt shows that nearly Rs21.79tr came from long-term loans while Rs243.66bn came from short-term loans.

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