Government debt soars to Rs40.28tr in October 2021

December 6, 2021 (MLN): The total debt of the central government during the month of October 2021 surged by Rs4.77 trillion or 13.44% YoY to stand at Rs40.28tr when compared to Rs35.05tr recorded in October 2020, the data released by the State Bank of Pakistan (SBP) showed on Monday.

On a monthly basis, the central government debt moved up by Rs2 billion against Rs40.25tr reported in September 2021.

The larger portion of the debt was domestic that clocked in at Rs26.46tr, signifying a growth of around 10.57% YoY, comprising of Rs20tr long-term debt and Rs6.41tr short term debt while the remaining was external.

By the end of October 2021, the government’s long-term debt increased by 2.75% MoM while on yearly basis, it surged by 5.85% when compared to Rs18.9tr at the end of October 2020.

However, the short-term debt dropped by 7.42% MoM whereas, on a YoY basis, it has jumped by 27.57%, compared to Rs5.02tr in October 2020.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs14.75tr. Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs6.4tr.

Borrowing through Naya Pakistan Schemes witnessed a notable surge of Rs38bn as of October 2021, compared to Rs1bn in October 2020.

A breakup of the central government external debt shows that nearly Rs13.6tr came from long-term loans while Rs221.4bn came from short-term loans.

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