Govt domestic debt, liabilities rise 21% to Rs48.1tr in July

September 05, 2024 (MLN): The total government domestic debt and liabilities have increased by 20.98% YoY to Rs48.06 trillion in July 2024, compared to Rs39.73tr in July 2023, the latest data released by the State Bank of Pakistan (SBP) showed.

On a sequential basis, domestic debt and liabilities have risen by 0.71% MoM compared to Rs47.72tr in June 2024.

According to details provided by the State Bank of Pakistan (SBP), the larger portion of the debt was permanent debt, which totaled Rs33.78tr, signifying a growth of 28.62% YoY.

This comprised Rs32.92tr in federal government bonds, Rs474.94bn in SBP's on-lending to the government of Pakistan against SDRs allocation, Rs386.13bn worth of prize bonds, and the remaining Rs2.84bn in market loans.

The floating debt rose by 14.53% YoY in July to Rs10.64tr compared toRs9.29tr in the same period last year.

Market Treasury Bills comprised the major proportion of the total floating debt, and stood at Rs10.56tr in July 2024.

On the other hand, the government's unfunded debt fell by 4.2% YoY to Rs2.82tr in July 2024, primarily due to a significant drop of 3.8% 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 Rs374.09bn in July 2024, compared to Rs384.69bn in July 2023.

Borrowing through Naya Pakistan Certificates also reduced by 36.61% YoY to Rs88.12bn in July 2024.

Conversely, on a sequential basis, it increased by 4.79% MoM in July compared to Rs84.09bn in June.

Moving forward, domestic liabilities of the government dropped by 48.75% YoY and were reported at Rs363.49bn in the review month.

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