Central govt debt soars by 21.38% YoY to Rs60.84tr in June

August 16, 2023 (MLN): The total debt of the central government has surged by 21.38% YoY to Rs60.84 trillion in June 2023, compared to Rs47.83tr in June 2022, the data released by the State Bank of Pakistan (SBP) showed.

On a sequential basis, the debt of the central government witnessed an increase of 3.19% MoM compared to Rs58.6tr in May 2023.

The 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 domestically clocked in at Rs38.81tr, signifying a growth of 24.85% YoY, comprising Rs29.33tr long-term debt and Rs9.34tr short-term debt while the remaining of Rs22.03tr was external.

By the end of June 2023, the government’s long-term debt increased by 21.26% YoY to Rs29.33tr as compared to Rs24.19tr recorded in the same period a year ago.

Similarly, the short-term debt jumped by 37.20% YoY as opposed to Rs6.80tr in June 2022.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs22.01tr, jumped by 24.43% YoY.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs9.27tr, up by 37.27% YoY.

Borrowing through Naya Pakistan Certificates has amplified by 53.61% YoY to stand at Rs142.7bn in June 2023.

A breakup of the central government's external debt shows that nearly Rs21.99tr came from long-term loans while Rs45.9bn came from short-term loans.

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