Government debt rises by 12.8% to Rs40.26tr in Sept’21

November 25, 2021(MLN): The total debt of the central government during July-September 2021 surged by Rs4.56trillion or around 12.8% YoY to stand at Rs40.26tr when compared to Rs35.68tr recorded in the same period of FY21, data released by the State Bank of Pakistan (SBP) showed on Wednesday.

The larger portion of the debt was domestic that clocked in at Rs26.44tr, signifying a growth of around 11.56% YoY, comprising of Rs19.47tr long-term debt and Rs6.93tr short term debt while the remaining was external.

By the end of September 2021, the government’s long-term debt escalated by approximately 4.68% when compared to Rs18.6tr at the end of September’20.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs14.58tr, and Saving Schemes accounted for Rs3.48tr.

Meanwhile, the short-term debt surged by 36% YoY whereby Market Treasury Bills (MTBs) amounted to Rs6.92tr.

Borrowing through Naya Pakistan Schemes witnessed a notable surge of Rs35.8bn during July-September 2021, compared to Rs70mn in the first quarter of FY21.

A breakup of the central government external debt shows that nearly Rs13.59tr came from long-term loans while Rs220bn came from short-term loans.

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