August 15, 2022 (MLN): Pakistan’s external debt and liabilities (outstanding) reached $130.2 billion (40% of GDP) at the end of FY22, witnessing an increase of $7.9bn or 6% YoY, the central bank data showed on Monday.
The increase is mainly attributable to the higher mobilization of foreign funds to plug fiscal and current account deficits and the accumulation of foreign reserves during the period.
In three months (Apr-Jun) of the current coalition government, the country’s external debt and liabilities went up by $1.18bn or 1% from $129bn in 3QFY22.
During the PTI government, foreign debt rose by $34bn, while it was $95bn when the PTI government came into power. During PML(N) tenure, foreign debt soared by $34bn as it was $61bn when it came into power.
According to the latest data issued by the SBP, 77% of the entire debt ($99.97bn) can be attributed to public external debt, the combination of the government’s long-term and short-term external debt, IMF loans to the central bank, and foreign exchange liabilities. The government external debt which includes both long-term and short-term external debt stood at $81.9bn during 4QFY22, up by 4% YoY while on a quarterly basis, it has jumped by 1% QoQ. Meanwhile, IMF loans to the federal government and central bank stood at $4.2bn and $2.7bn respectively, while foreign exchange liabilities outstanding were recorded at $11.13bn during the period under review.
Within the public external debt, the long-term debt by the end of 4QFY22 stood at $80.59bn, up by 3% compared to 4QFY21 whereas the same has increased marginally on a sequential basis. Short-term debt (less than one year) increased by 162% YoY to $1.35bn compared to the figure recorded at the end of 4QFY21. While it was jumped by just 2% from $1.3bn at the end of Jan-March FY22 quarter.
The rest of the amount has been a result of government borrowing from public sector enterprises, banks, and the private sector.
Notably, short-term bank borrowing reached $2.9bn at the end of Q4 of FY22, showing an increase of 12% YoY and 3% QoQ.
Long-term bank borrowing stood zero at the end of 4QFY22, compared to $1bn in the previous quarter and $4bn in 4Q of FY21.
Outstanding external debt of public sector enterprises (PSEs) during 4QFY22 stood at $8.2bn, the figure was around 21% and 12% higher when compared with 4QFY21 and with the previous quarter.
Private sector external debt, which attributed to 10% of the total external debt amounted to $11.6bn by the end of 4QFY22, up by 7% YoY and 3% QoQ.
By the end of the fourth quarter of the fiscal year 2022, the official liquid reserves clocked in at $9.9bn, marking a notable fall of 43% YoY while on the quarterly basis, the official liquid reserves tumbled by 14% QoQ.
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