Central govt debt rises by 19.05% YoY to Rs64.81tr in February

April 04, 2024 (MLN): The total debt of the central government rose by 19.05% YoY to Rs64.81 trillion in February 2024, compared to Rs54.44tr in February 2023, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt decreased by 0.06% MoM compared to Rs64.84tr in January 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 Rs42.67tr, comprising Rs34.62tr long-term debt, Rs7.95tr short-term debt and the remaining Rs99.19bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect an increase of 24.93% YoY and on a sequential basis a rise of 0.11%.

By the end of February 2024, the government’s long-term debt surged by 24.84% YoY to Rs34.62tr as compared to Rs27.73tr recorded in the same period a year ago, while rising 1.38% MoM.

Meanwhile, the short-term debt rose by 26.35% YoY to Rs7.95tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs26.03tr, up by 23.07% YoY and 1.71% MoM.

In the short-term domestic debt, Market Treasury Bills (MTBs) were dominant a borrowing through this security amounting to Rs7.87tr, up by 26.35% YoY, while down by 5.1% MoM.

Borrowing through Naya Pakistan Certificates has declined by 23.76% YoY to stand at Rs99.19bn in February 2024.

Comparison on a monthly metric shows that in February, the government borrowed 4.26% less through these certificates compared to Rs103.6bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs22.06tr came from long-term loans while Rs78.4bn came from short-term loans.

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