Central govt debt surges by 11% YoY to Rs70.36tr in November

January 06, 2025 (MLN): The total debt of the central government increased by 11% YoY to Rs70.36 trillion in November 2024, compared to Rs63.4tr in November 2023, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt inched up by 1.81% MoM compared to Rs69.11tr in October 2024.

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 Rs48.58tr, comprising Rs36.86tr long-term debt, Rs9.64tr short-term debt and the remaining Rs79bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect an increase of 18.62% YoY and on a sequential basis a downturn of 2.86%

By the end of November 2024, the government’s long-term debt rose by 17% YoY and 5% MoM to Rs38.86tr as compared to Rs33.2tr recorded in the same period a year ago and Rs36.97tr in October 2024. 

Similarly, the short-term debt rose by 26.41% YoY to Rs9.63tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs29.3tr, up by 17.36% YoY and 5.57% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs9.55tr, up by 26.61% YoY, while down by 5.38% MoM.

Borrowing through Naya Pakistan Certificates has declined by 37.25% YoY to Rs79bn in November 2024.

Comparison on a monthly metric shows that in November, the government borrowed 4.17% more through these certificates compared to Rs76bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs21.47tr came from long-term loans while Rs307bn came from short-term loans.

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