Central govt debt rises by 17.85% YoY to Rs64.84tr in January

March 05, 2024 (MLN): The total debt of the central government went up by 17.85% YoY to Rs64.84 trillion in January 2023, compared to Rs55.02tr in January 2022, the data released by the State Bank of Pakistan (SBP) showed.

The year-on-year increase in debt burden is primarily attributed to borrowing from domestic and foreign sources to cover the fiscal deficit.

Conversely, on a sequential basis, the central government debt decreased by 0.53% MoM compared to Rs65.19tr in December 2023.

As per details made available by SBP, the larger portion of the debt was domestic and stood at Rs42.63tr, comprising Rs34.15tr long-term debt, Rs8.38tr short-term debt and the remaining Rs103.6bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 24.15% YoY and on a sequential basis an increase of 0.09%.

By the end of January 2023, the government’s long-term debt rose by 24.11% YoY to Rs34.15tr as compared to Rs27.51tr recorded in the same period a year ago, while increasing 0.14% MoM.

Similarly, the short-term debt increased by 25.16% YoY to Rs8.38tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs25.6tr, up by 22.43% YoY, while down by 0.05% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were dominant as borrowing through this security amounting to Rs8.29tr, Up by 25.16% YoY and 0.07% MoM.

Borrowing through Naya Pakistan Certificates has declined by 19.7% YoY to stand at Rs103.6bn in January 2023.

Comparison on a monthly metric shows that in January, the government borrowed 12.73% less through these certificates compared to Rs118.72bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs22.14tr came from long-term loans while Rs76.34bn came from short-term loans.

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