Govt domestic debt, liabilities rise 1.2% in Aug

October 08, 2024 (MLN): The total government domestic debt and liabilities have increased by 1.18% to Rs48.65 trillion in August 2024, compared to Rs48.08tr in July 2024, the latest data released by the State Bank of Pakistan (SBP) showed.

On a yearly basis, domestic debt and liabilities have risen by 20.21% compared to Rs40.47tr in August 2023.

According to details provided by the State Bank of Pakistan (SBP), the larger portion of the debt was permanent debt, which totaled Rs34.1tr, signifying a growth of 27.88% YoY.

This comprised Rs33.24tr in federal government bonds, Rs474.94bn in SBP's on-lending to the government of Pakistan against SDRs allocation, Rs387.56bn worth of prize bonds, and the remaining Rs2.84bn in market loans.

The floating debt rose by 13.75% in August to Rs10.96tr compared to Rs9.64tr in the same period last year.

Market Treasury Bills comprised the major proportion of the total floating debt and stood at Rs10.88tr in August 2024.

On the other hand, the government's unfunded debt fell by 3.89% YoY to Rs2.82tr in August 2024, primarily due to a significant drop of 3.39% YoY in saving schemes, which amounted to Rs2.73tr compared to Rs2.83tr in the SPLY.

Foreign currency loans fell significantly as they clocked in at Rs373.82bn in August 2024, compared to Rs410.02bn in August 2023.

Borrowing through Naya Pakistan Certificates also reduced by 45.03% YoY to Rs80bn in August 2024.

Similarly, on a sequential basis, it fell by 9.22% in August compared to Rs88.12bn in July.

Moving forward, domestic liabilities of the government dropped by 54.19% YoY and were reported at Rs309bn in the review month.

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