Central govt debt rises to Rs72tr in December

February 14, 2025 (MLN): The total debt of the central government increased by 9.9% YoY to Rs71.65 trillion in December 2024, compared to Rs65.2tr in December 2023, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt surged by 1.82% MoM compared to Rs70.36tr in November 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 Rs49.88tr, comprising Rs41.11tr long-term debt, Rs8.7tr short-term debt and the remaining Rs80.96bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 17.11% YoY and on a sequential basis a growth of 2.67%

By the end of December 2024, the government’s long-term debt surged by 20.52% YoY to Rs41.11tr as compared to Rs34.11tr recorded in the same period a year ago, while increasing 5.76% MoM.

Conversely, the short-term debt surged by 3.9% YoY to Rs8.7tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs31.22tr, Up by 21.9% YoY and 6.49% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs8.6tr, up by 3.78% YoY, while down by 9.94% MoM.

Borrowing through Naya Pakistan Certificates has declined by 31.8% YoY to stand at Rs80.96bn in December 2024.

Comparison on a monthly metric shows that in December, the government borrowed 2.77% more through these certificates compared to Rs78.78bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs21.45tr came from long-term loans while Rs309.84bn came from short-term loans.

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