Central govt debt soars by 22.11% YoY to Rs61.75tr in July

September 05, 2023 (MLN): The total debt of the central government has surged by 22.11% YoY to Rs61.75 trillion in July 2023, compared to Rs50.57tr in July 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 1.49% MoM compared to Rs60.84tr in June 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 Rs39.02tr, signifying a growth of 24.08% YoY, comprising Rs29.59tr long-term debt and Rs9.29tr short-term debt while the remaining Rs22.73tr was external.

By the end of July 2023, the government’s long-term debt increased by 24.44% YoY to Rs29.59tr as compared to Rs23.78tr recorded in the same period a year ago.

Similarly, the short-term debt jumped by 27.14% YoY as opposed to Rs7.31tr in July 2022.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs22.06tr, up by 27.40% YoY.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs9.22tr, up by 27.14% YoY.

Borrowing through Naya Pakistan Certificates has risen by 26.71% YoY to stand at Rs139bn in July 2023.

A breakup of the central government's external debt shows that nearly Rs22.67tr came from long-term loans while Rs65.2bn came from short-term loans.

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