Central govt debt soars by 27% YoY to Rs54.35tr in February 2023

April 05, 2023 (MLN): The total debt of the central government has surged by 27% YoY to 54.35 trillion in February 2023, compared to Rs42.76tr in February 2022, the data released by the State Bank of Pakistan (SBP) showed on Wednesday.

On a sequential basis, the debt of the central government witnessed a meager drop of 1.1% MoM compared to Rs54.94tr in January 2023.

Within 8MFY23, the debt has increased by 13.74% YoY compared to Rs47.78tr in June 2022.

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 Rs34tr, signifying a growth of 23% YoY, comprising Rs27.73tr long-term debt and Rs6.3tr short-term debt while the remaining was external.

By the end of February 2023, the government’s long-term debt increased by 25.24% YoY when compared to Rs22.14tr recorded in the same period a year ago.

Similarly, the short-term debt inched up by around 14% YoY as opposed to Rs5.52tr in February 2022.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs21.15tr, jumped by 31.65% YoY.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs6.22tr, up by 13.83% YoY.

Borrowing through Naya Pakistan Certificates has moved up by 13% YoY to stand at Rs46bn in February 2023.

A breakup of the central government's external debt shows that nearly Rs20.2tr came from long-term loans while Rs73.4bn came from short-term loans.

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