January 05, 2024 (MLN): The total debt of the central government increased by 24.39% YoY to Rs63.39 trillion in November 2023, compared to Rs50.96tr in November 2022, the data released by the State Bank of Pakistan (SBP) showed.
Similarly, on a sequential basis, the central government debt rose 1.45% MoM compared to Rs62.48tr in October 2023.
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 Rs40.96tr, comprising Rs33.21tr long-term debt and Rs7.62tr short-term debt while the remaining Rs22.43tr was external.
When compared with the historical data for the previous year and month, the domestic debt has witnessed an increase of 24.16% YoY and 1.35% MoM.
By the end of November 2023, the government’s long-term debt increased by 27.55% YoY to Rs33.21tr as compared to Rs26.03tr recorded in the same period a year ago.
Going forward, the data shows that the short-term debt increased by 11.3% YoY while falling by 15.18% MoM.
Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) continued to be the predominant avenue, accounting for Rs24.98tr and reflecting a growth of 28.33% YoY and 8.28% MoM.
Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs7.54tr, rising by 11.05% YoY,
Meanwhile, borrowing through this channel decreased significantly by 15.33% MoM on a sequential basis.
Borrowing through Naya Pakistan Certificates has showcased an increase of 23.27% YoY, while going down by 2.53% MoM to stand at Rs125.55bn in November 2023.
Breakup of the central government's external debt shows that nearly Rs22.4tr came from long-term loans while Rs29.76bn came from short-term loans.
