Central govt debt soars by 29.04% YoY to Rs63.97tr in August

October 05, 2023 (MLN): The total debt of the central government has surged by 29.04% YoY to Rs63.97 trillion in August 2023, compared to Rs49.57tr in August 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 3.59% MoM compared to Rs61.75tr in July 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 Rs39.79tr, signifying a growth of 23.76% YoY, comprising Rs30tr long-term debt and Rs9.63tr short-term debt while the remaining Rs24.17tr was external.

By the end of August 2023, the government’s long-term debt increased by 22.19% YoY to Rs30tr as compared to Rs24.56tr recorded in the same period a year ago.

Similarly, the short-term debt jumped by 28.71% YoY to Rs9.63tr as opposed to Rs7.48tr in August 2022.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs22.09tr, up by 22.26% YoY.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs9.56tr, up by 28.69% YoY.

Borrowing through Naya Pakistan Certificates has risen by 36.79% YoY to stand at Rs145.5bn in August 2023.

A breakup of the central government's external debt shows that nearly Rs24.11tr came from long-term loans while Rs69bn came from short-term loans.

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