Central govt debt soars by 32.1% YoY to Rs58.96tr in May

July 05, 2023 (MLN): The total debt of the central government has surged by 32.08% YoY to 58.96 trillion in May 2023, compared to Rs44.64tr in May 2022, the data released by the State Bank of Pakistan (SBP) showed.

On a sequential basis, the debt of the central government witnessed a meager increase of 0.6% MoM compared to Rs58.6tr in April 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 Rs37.05tr, signifying a growth of 27.6% YoY, comprising Rs29.48tr long-term debt and Rs7.43tr short-term debt while the remaining was external.

By the end of May 2023, the government’s long-term debt increased by 26.2% YoY to Rs29.48tr as compared to Rs23.4tr recorded in the same period a year ago.

Similarly, the short-term debt jumped by 31.6% YoY as opposed to Rs5.65tr in May 2022.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs22.1tr, jumped by 29.7% YoY.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs7.37tr, up by 31.66% YoY.

Borrowing through Naya Pakistan Certificates has amplified by 3.44x YoY to stand at Rs138.9bn in May 2023.

A breakup of the central government's external debt shows that nearly Rs21.9tr came from long-term loans while Rs45.8bn came from short-term loans.

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