Pakistan’s total central govt debt surges by over 12 per cent YoY

ISLAMABAD: The central government’s total debt increased by 12.67 per cent year-on-year (YoY), reaching Rs69.6 trillion in July 2024, up from Rs61.78 trillion in July 2023, according to data from the State Bank of Pakistan (SBP).

On a month-on-month (MoM) basis, the debt rose by 1 per cent, climbing from Rs68.91 trillion in June 2024.

This significant year-on-year rise in debt is mainly due to borrowing from both domestic and foreign sources to cover the fiscal deficit.

Breaking down the debt, most of it was domestic, amounting to Rs47.7 trillion. This included Rs36.97 trillion in long-term debt, Rs10.64 trillion in short-term debt, and Rs88.12 billion raised through Naya Pakistan Certificates.

According to Mettis Global, the domestic debt showed a notable YoY growth of 22.25 per cent, with a slight 1.14 per cent increase on a monthly basis.

By the end of July 2024, the long-term debt rose by 24.95 per cent YoY to Rs36.97 trillion, compared to Rs29.59 trillion in July 2023, and increased 0.39 per cent from June. Short-term domestic debt also grew by 14.53 per cent YoY, reaching Rs10.64 trillion.

Within the long-term domestic debt, Pakistan Investment Bonds (PIBs) made up the largest share, totalling Rs28.15 trillion, a rise of 27.61 per cent YoY and 0.44 per cent MoM.

In short-term domestic debt, Market Treasury Bills (MTBs) were the primary borrowing tool, standing at Rs10.56 trillion, up by 14.48 per cent YoY and 3.84 per cent MoM.

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