Government domestic debt, liabilities rises by 23% YoY to Rs40.47tr in August

October 05, 2023 (MLN): The total government domestic debt and liabilities have risen by 23.03% YoY to Rs40.47 trillion in August 2023, compared to Rs32.9tr in August 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 inched up by 1.86% MoM compared to Rs39.73tr in July 2023.

According to details provided by the State Bank of Pakistan (SBP), the larger portion of the debt was permanent debt, which totaled Rs26.67tr, signifying a growth of 25.02% YoY.

This comprised R25.81tr in federal government bonds, Rs474.9 billion in SBP's on-lending to the government of Pakistan against SDRs allocation, Rs382.4bn worth of prize bonds, and the remaining Rs2.8bn in market loans.

The floating debt rose by 28.71% YoY in August to Rs9.63tr compared to Rs7.48tr in the same period last year.

This debt of Rs9.29tr came majorly from Market Treasury Bills worth Rs9.56tr in August 2023.

On the other hand, the government's unfunded debt fell by 8.93% YoY to Rs2.93tr in August 2023, primarily due to a significant drop of 8.73% in saving schemes, which amounted to Rs2.83tr compared to Rs3.13tr in the same period last year.

Foreign currency loans rose significantly as they clocked in at Rs410bn in August 2023, compared to Rs9.3bn in August 2022, and Rs384.7 in July 2023.

Borrowing through Naya Pakistan Certificates also rose by 36.79% YoY to Rs145.5bn in August 2023.

Similarly, on a sequential basis, it rose by 4.7% MoM in August compared to Rs139bn in July 2023.

Moreover, domestic liabilities of the government fell by 8.69% YoY and 4.90% MoM to stand at Rs674.5bn in August 2023.

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