Central govt debt rises by 24.45% YoY to Rs62.48tr in October

December 05, 2023 (MLN): The total debt of the central government has increased by 24.45% YoY to Rs62.48 trillion in October 2023, compared to Rs50.21tr in October 2022, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt inched up 0.31% MoM compared to Rs62.29tr in September 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 Rs40.41tr, signifying a growth of 24.12% YoY and 1.79% MoM, comprising Rs31.3tr long-term debt and Rs8.99tr short-term debt while the remaining Rs22.07tr was external.

By the end of October 2023, the government’s long-term debt increased by 21.81% YoY to Rs31.3tr as compared to Rs25.69r recorded in the same period a year ago, while also rising 1.95% MoM.

Similarly, the short-term debt jumped by 32.9% YoY and 1.18% MoM.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs23.07tr, up by 19.89% YoY and 1.51% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs8.91tr, up by 32.83% YoY and 1.15% MoM.

Borrowing through Naya Pakistan Certificates has risen by 25.23% YoY and 6.69% MoM to stand at Rs128.8 billion in October 2023.

A breakup of the central government's external debt shows that nearly Rs22.04tr came from long-term loans while Rs31.8bn came from short-term loans.

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