Central govt debt surges to Rs74tr in March

May 12, 2025 (MLN): The total debt of the central government went up by 12.71% YoY to Rs73.69 trillion in March 2025, compared to Rs65.38tr in March 2024, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt rose by 0.89% MoM compared to Rs73.04tr in February 2025.

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 Rs51.52tr, comprising Rs43.59tr long-term debt, Rs7.86tr short-term debt and the remaining Rs62.67bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect an increase of 18.6% YoY and on a sequential basis a growth of 0.97%

By the end of March 2025, the government’s long-term debt increased by 25.09% YoY to Rs43.59tr as compared to Rs34.85tr recorded in the same period a year ago, while increasing 2.05% MoM.

Conversely, the short-term debt fell by -7.44% YoY to Rs7.86tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs33.62tr, Up by 28.48% YoY and 3.27% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs7.76tr, down by 7.68% YoY and 4.57% MoM.

Borrowing through Naya Pakistan Certificates has decreased by 33.23% YoY to stand at Rs62.67bn in March 2025.

Comparison on a monthly metric shows that in March , the government borrowed 10.65% less through these certificates compared to Rs70.14bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs21.9tr came from long-term loans while Rs266bn came from short-term loans.

Copyright Mettis Link News