Central govt debt rises 13.27% YoY to Rs68.9tr in June

August 15, 2024 (MLN): The total debt of the central government went up by 13.27% YoY to Rs68.91 trillion in June 2024, compared to Rs60.84tr in June 2023, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt rose 1.74% MoM compared to Rs67.73tr in May 2024.

The year-on-year 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 and stood at Rs47.16tr, comprising Rs36.83tr long-term debt, Rs10.25tr short-term debt and the remaining Rs84.09bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect an increase of 21.52% YoY and on a sequential basis growth of 2.25%

By the end of June 2024, the government’s long-term debt increased by 25.56% YoY to Rs36.83tr as compared to Rs29.33tr recorded in the same period a year ago, while rising 0.86% MoM.

Similarly, the short-term debt surged by 9.77% YoY to Rs10.25tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs28.03tr, up by 27.34% YoY and 1.17% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were dominant as borrowing through this security amounting to Rs10.25tr, up by 9.77% YoY and 8.53% MoM.

Borrowing through Naya Pakistan Certificates has decreased by 41.07% YoY to stand at Rs84.09bn in June 2024.

Comparison on a monthly metric shows that in June, the government borrowed 3.11% less through these certificates compared to Rs86.79bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs21.54tr came from long-term loans while Rs211.5bn came from short-term loans.

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