Central govt debt rises 14.4% YoY to Rs65.37tr in March

May 15, 2024 (MLN): The total debt of the central government increased by 14.44% YoY to Rs65.37 trillion in March 2024, compared to Rs57.12tr in March 2023, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt inched up by 0.88% MoM compared to Rs64.81tr in February 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 Rs43.43tr, comprising Rs34.85tr long-term debt, Rs8.49tr short-term debt and the remaining Rs93.85bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 23.82% YoY and on a sequential basis an increase of 1.78%.

By the end of March 2024, the government’s long-term debt rose by 21.66% YoY to Rs34.85tr as compared to Rs28.64tr recorded in the same period a year ago, while increasing 0.66% MoM.

Similarly, the short-term debt surged by 34.9% YoY to Rs8.49tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs26.17tr, Up by 20.14% YoY and 0.53% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were dominant a borrowing through this security amounting to Rs8.41tr, Up by 34.98% YoY and 6.85% MoM.

Borrowing through Naya Pakistan Certificates has declined by 32.59% YoY to stand at Rs93.85bn.

Comparison on a monthly metric shows that in March, the government borrowed 5.38% less through these certificates compared to Rs99.19bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs21.85tr came from long-term loans while Rs88.44bn came from short-term loans.

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