Central govt debt soars by 33% to Rs57.12tr in March

May 16, 2023 (MLN): The total debt of the central government has surged by 32.8% YoY to 57.12 trillion in March 2023, compared to Rs43tr in March 2022, the data released by the State Bank of Pakistan (SBP) showed on Monday.

On a sequential basis, the debt of the central government witnessed an increase of 5% MoM compared to Rs54.35tr in February 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 Rs35.07tr, signifying a growth of 25% YoY, comprising Rs28.64tr long-term debt and Rs6.3tr short-term debt while the remaining was external.

By the end of March 2023, the government’s long-term debt increased by 25.6% YoY when compared to Rs22.8tr recorded in the same period a year ago.

Similarly, the short-term jumped by 20% YoY as opposed to Rs5.24tr in March 2022.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs21.78tr, jumped by 31.8% YoY.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs6.23tr, up by 20% YoY.

Borrowing through Naya Pakistan Certificates has amplified by 3.7x YoY to stand at Rs139.2bn in March 2023.

A breakup of the central government's external debt shows that nearly Rs22tr came from long-term loans while Rs80bn came from short-term loans.

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