June 07, 2024 (MLN): The total debt of the central government went up by 12.77% YoY to Rs66.08 trillion in April 2024, compared to Rs58.6tr in April 2023, the data released by the State Bank of Pakistan (SBP) showed.
Moreover, on a sequential basis, the central government debt increased by 1.09% MoM compared to Rs65.37tr in March 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 Rs44.48tr, comprising Rs35.22tr long-term debt, Rs9.17tr short-term debt and the remaining Rs92.75bn through Naya Pakistan Certificates.
The figures reported by the central bank for the domestic debt reflect a growth of 21.7% YoY and on a sequential basis a growth of 2.42%
By the end of April 2024, the government’s long-term debt rose by 20.63% YoY to Rs35.22tr as compared to Rs29.2tr recorded in the same period a year ago, while rising 1.08% MoM.
Similarly, the short-term debt surged by 27.04% YoY to Rs9.17tr in the review month.
Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs26.54tr, Up by 20.04% YoY and 1.4% MoM.
Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were dominant as borrowing through this security amounted to Rs9.08tr, up by 27.06% YoY and 8.02% MoM.
Borrowing through Naya Pakistan Certificates has decreased by 32.93% YoY to stand at Rs92.75bn in bn 2024.
Comparison on a monthly metric shows that in April, the government borrowed 1.18% less through these certificates compared to Rs93.85bn in the previous month.
A breakup of the central government’s external debt shows that nearly Rs21.5tr came from long-term loans while Rs101.94bn came from short-term loans.
