August 30, 2021 (MLN): The total debt of the Central Government during FY21 surged by Rs3.59trillion or around 10% YoY to stand at Rs38.697tr when compared to Rs35.106tr recorded in FY20.
In FY19, federal government debt stood at Rs31.786bn.
In Q4 of FY21, the central government debt increased by 5% against Rs36.84tr reported at the end of March 2021.
The data released by the State Bank of Pakistan (SBP) shows that the larger portion of the debt was domestic, whereas the remaining was external. The Central Government Domestic Debt amounted to Rs26.26tr during FY21, signifying a growth of around 13% YoY, comprising of Rs19.556tr long term debt and Rs6.680tr short term debt.
By the end of FY21, the government’s long-term debt escalated by approximately 10% when compared to Rs17.7tr at the end of FY20 while it witnessed a meager increase of 3% on a quarterly basis in Q4 of FY21. It is mainly due to the government’s decision to increase the maturity period of debt through converting its short-term borrowing from the central bank to long-term debt.
Meanwhile, the short-term debt surged by 20% YoY, while on a quarterly basis, it inflated by 11% from Rs6tn in Q3 of FY21.
Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs14.32tr, and Saving Schemes accounted for Rs14.59tr, up by 13% YoY. While in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs6.676tr, showing a growth of 20% YoY in FY21.
A breakup of the Central Government External Debt shows that nearly Rs12.297tr came from long-term loans while Rs135billion came from short-term loans.
