October 12, 2020 (MLN): The total debt of the Central Government during the month of August 2020 stood at Rs. 35.65 trillion, i.e. 0.29% percent higher than the figures reported last month. On a yearly basis, it translated into an increase of 10.6%.
According to the data released by the State Bank of Pakistan (SBP), the larger portion of the debt comprised of domestic debt, whereas the remaining was external. The Central Government Domestic Debt amounted to Rs. 23.53 trillion during the month, signifying a growth of 0.62% MoM and 9.5% YoY.
Under the Central government’s domestic debt, the Long-term debt amounted to Rs. 18.3 trillion, whereas the Short-term debt amounted to Rs. 5.23 trillion. The Long-term debt, which is further divided into three broad categories namely; Market loans, Federal government bonds, and Prize Bonds, amounted to Rs. 2.8 billion, Rs. 13.87 trillion and Rs. 736.1 billion, respectively. By the end of August 2020, the government’s long-term debt increased by 1.34% MoM and 16.1 YoY, while the short-term debt declined by 1.83% MoM and 8.7% YoY.
The Pakistan Investment Bonds (PIBs), which comes under Federal Government Bonds, accounted for Rs. 13.39 trillion, whereas Saving Schemes, which comes under Prize Bonds, amounted to Rs. 3.52 trillion.
The total value of Bai Muajjal, Market Treasury Bills, MTBs for Replenishment of Cash and Outright Sale of MRTS to Banks, i.e. a part of Short-term debt, clocked in at Rs 5.23 trillion, depicting a decline of 1.83% MoM and 8.7% YoY.
Meanwhile, the Central government’s External debt which excludes IMF loans to Central Bank for BOP support and includes foreign exchange liabilities and IMF loan for budgetary support logged in at Rs 12.11 trillion, registering a decline of 0.33% MoM and an increase of 12.8% YoY.
A breakup of the Central Government External Debt shows that nearly Rs.11.94 trillion came from long-term loans while Rs. 175.2 billion came from short-term loans.
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