Government domestic debt, liabilities rises 24% YoY to Rs39.72tr in July 2023

September 05, 2023 (MLN): The total government domestic debt and liabilities have risen by 24.33% YoY to Rs39.72 trillion in July 2023, compared to Rs31.95tr in July 2022, the latest data released by the State Bank of Pakistan (SBP) showed.

On a sequential basis, the debt of total government domestic debt and liabilities have witnessed a meager increase of 0.18% MoM compared to Rs39.65tr in June 2023.

According to details provided by the State Bank of Pakistan (SBP), the larger portion of the debt was permanent debt, which totaled Rs26.26tr, signifying a growth of 28.08% YoY.

This comprised R25.41tr in federal government bonds, Rs474.9 billion in SBP's on-lending to the government of Pakistan against SDRs allocation, Rs382bn worth of prize bonds, and the remaining Rs2.8bn in market loans.

The floating debt rose by 27.14% YoY in July to Rs9.29tr compared to Rs7.31tr in the same period last year.

This debt of Rs9.29tr came majorly from Market Treasury Bills worth Rs9.22tr in July 2023.

On the other hand, the government's unfunded debt fell by 9.84% YoY to Rs2.94tr in July 2023, primarily due to a significant drop of 9.58% in saving schemes, which amounted to Rs2.83tr compared to Rs3.13tr in the same period last year.

Foreign currency rose significantly as it clocked in at Rs384.7bn in July 2023, compared to Rs10.1bn in July 2022, and Rs383.8 in June 2023.

Borrowing through Naya Pakistan Certificates also rose by 26.71% YoY to Rs139bn in July 2023.

Conversely, on a sequential basis, it fell by 2.59% MoM in July compared to Rs142.7bn in June 2023.

Similarly, domestic liabilities fell by 6.49% YoY and 16.06% MoM to stand at Rs709.3bn in July 2023.

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