Central govt debt soars by 25.94% YoY to Rs62.29tr in September

November 10, 2023  (MLN): The total debt of the central government has surged by 25.94% YoY to Rs62.291 trillion in September 2023, compared to Rs49.46tr in September 2022, the data released by the State Bank of Pakistan (SBP) showed.

Conversely, on a sequential basis, the central government debt witnessed a decrease of 2.62% MoM compared to Rs63.97tr in August 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 Rs39.7tr, signifying a growth of 26.2% YoY, comprising Rs30.69tr long-term debt and Rs8.88tr short-term debt while the remaining Rs22.59tr was external.

By the end of September 2023, the government’s long-term debt increased by 24.64% YoY to Rs30.69tr as compared to Rs24.63tr recorded in the same period a year ago.

Similarly, the short-term debt jumped by 32.06% YoY to Rs8.88tr as opposed to Rs6.73tr in September 2022.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs22.72tr, up by 24.95% YoY and 2.84% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs8.81tr, up by 32.01% YoY.

Borrowing through Naya Pakistan Certificates has risen by 16.82% YoY to stand at Rs120.7bn in September 2023.

A breakup of the central government's external debt shows that nearly Rs22.55tr came from long-term loans while Rs45.8bn came from short-term loans.

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