Govt domestic debt, liabilities rise 23.4% YoY to Rs46.75tr in May

July 05, 2024 (MLN): The total government domestic debt and liabilities have increased by 23.38% YoY to Rs46.75 trillion in May 2024, compared to Rs37.89tr in May 2023, the latest data released by the State Bank of Pakistan (SBP) showed.

On a sequential basis, domestic debt and liabilities have risen by 3.89% MoM compared to Rs45tr in April 2024.

According to details provided by the State Bank of Pakistan (SBP), the larger portion of the debt was permanent debt, which totaled Rs33.43tr, signifying a growth of 27.79% YoY.

This comprised Rs32.57tr in federal government bonds, Rs474.94bn in SBP's on-lending to the government of Pakistan against SDRs allocation, Rs384.39bn worth of prize bonds, and the remaining Rs2.84bn in market loans.

The floating debt rose by 28.09% YoY in May to Rs9.52tr compared to Rs7.43tr in the same period last year.

Market Treasury Bills comprised the major proportion of the total floating debt and stood at Rs9.44tr in May 2024.

On the other hand, the government's unfunded debt fell by 4.91% YoY to Rs2.79tr in May 2024, primarily due to a significant drop of 4.55% YoY in saving schemes, which amounted to Rs2.7tr compared to Rs2.83tr in the SPLY.

Foreign currency loans fell significantly as they clocked in at Rs373.53bn in May 2024, compared to Rs383.12bn in May 2023.

Borrowing through Naya Pakistan Certificates also reduced by 37.51% YoY to Rs86.79bn in May 2024.

Similarly, on a sequential basis, it fell by 6.42% MoM in May compared to Rs92.75bn in April.

Moving forward, domestic liabilities of the government dropped by 35.17% YoY and were reported at Rs542.61bn in the review month.

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