Pakistan’s central govt debt surpasses Rs70 trillion mark in August

ISLAMABAD: As of August 2024, the total debt of Pakistan’s central government surpassed Rs70 trillion, according to data released by the State Bank of Pakistan (SBP).

This represents a 9.99 per cent rise from the Rs63.97 trillion recorded in August 2023.

Compared to July 2024, when the debt stood at Rs69.62 trillion, the debt increased by 1.06 per cent. The growing debt burden has been driven by the need to borrow from both domestic and international sources to finance the fiscal deficit.

The SBP data shows that the bulk of this debt is domestic, amounting to Rs48.34 trillion. Of this, Rs37.3 trillion is long-term debt, Rs10.96 trillion is short-term, and Rs80 billion is tied to Naya Pakistan Certificates. Year-on-year, domestic debt has jumped by 21.47 per cent, while month-on-month, it rose by 1.31 per cent.

Breaking down the long-term debt, it increased by 24.27 per cent over the past year to reach Rs37.3 trillion in August 2024, compared to Rs30.01 trillion in August 2023. Month-on-month, it inched up by 0.83 per cent. The short-term domestic debt also saw a rise, growing by 13.75 per cent year-on-year to Rs10.96 trillion.

According to Mettis Global, Pakistan Investment Bonds (PIBs) dominated the long-term domestic debt, accounting for Rs28.39 trillion, a 28.5 per cent rise from last year.

On a monthly basis, this figure grew by 0.86 per cent. In short-term debt, the main borrowing tool was Market Treasury Bills (MTBs), with borrowing through MTBs reaching Rs10.88 trillion—up 13.72 per cent year-on-year and 3.02 per cent month-on-month.

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