July 9, 2019 (MLN): The central government's domestic and external debts by the end of May, 2019 had collectively floated the total sum to Rs.29.8 trillion as per the latest of the monthly released statistical reports, issued by the State Bank of Pakistan.
Compared to the corresponding month of last year, this translates into an expansion of Rs.6 trillion or 25.2% due to low revenue collection which resulted in excessive borrowing to finance the growing domestic expenses.
Meanwhile, total net debt accumulation by the government during the 11 months of ongoing fiscal year, stands at a sum of Rs.5.5 trillion since the amount recorded at the beginning of the year was Rs.24.2 trillion.
The larger portion of total debt acquired this year specifically, was acquired from domestic means which stands at Rs.3.3 trillion whereas external debt stands at Rs.2.2 trillion.
The larger chunk of loan acquired from external avenues has been borrowed for long term, a sum of Rs.2.3 trillion whereas Rs.88.5 billion were retired on short term loans acquired from overseas.
Within Pakistan, the trend is inverted as short term borrowing for past 11 months stands at Rs.2.9 trillion while long term borrowing is recorded at Rs.413 billion.
The short term domestic borrowing mainly accounts for Rs.3.5 trillion investment in MTB’s for replenishment of cash, while Rs.472 billion have been paid out as MTB returns during the year.
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