Central govt debt soars by 27.7% YoY to Rs65.19tr in December

February 12, 2024 (MLN): The total debt of the central government has surged by 27.68% YoY to Rs65.19 trillion in December 2023, compared to Rs51.1tr in January 2022, the data released by the State Bank of Pakistan (SBP) showed.

Similarly, on a sequential basis, the central government debt witnessed a rise of 2.84% MoM compared to Rs63.39tr in November 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 Rs42.59tr, signifying a growth of 28.4% YoY, comprising Rs34.1tr long-term debt and Rs8.37tr short-term debt while the remaining Rs22.6tr was external.

By the end of December 2023, the government’s long-term debt increased by 26.7% YoY to Rs34.1tr as compared to Rs26.91tr recorded in the same period a year ago.

Similarly, the short-term debt jumped by 32.06% YoY to Rs8.37tr as opposed to Rs6.16tr in December 2022.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs25.61tr, up by 26.1% YoY and 2.5% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs8.29tr, up by 36.1% YoY and 9.9% MoM.

Borrowing through Naya Pakistan Certificates has risen by 8.2% YoY to stand at Rs118.7bn in December 2023.

While on a monthly basic, it has fallen by 5.4% MoM compared to Rs125.5bn in November 2023.

A breakup of the central government's external debt shows that nearly Rs22.57tr came from long-term loans while Rs28bn came from short-term loans.

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