International, domestic borrowing push Pakistan’s debt up by 15.01 per cent

KARACHI: The central government’s total debt surged by 15.01 per cent year-on-year, reaching Rs67.82 trillion in May 2024, compared to Rs58.96 trillion in May 2023, according to data released by the State Bank of Pakistan (SBP).

On a month-on-month basis, the debt increased by 2.62 per cent, rising from Rs66.08 trillion in April 2024 to Rs67.82 trillion in May 2024.

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

The SBP’s detailed report highlights that the majority of the debt is domestic, amounting to Rs46.21 trillion. This includes Rs36.6 trillion in long-term debt, Rs9.52 trillion in short-term debt, and Rs86.79 billion borrowed through Naya Pakistan Certificates.

The domestic debt has shown a year-on-year increase of 24.7 per cent, with a month-on-month growth of 3.88 per cent.

By the end of May 2024, the government’s long-term debt had risen by 24.14 per cent year-on-year to Rs36.6 trillion, compared to Rs29.48 trillion in the same period the previous year, and saw a month-on-month increase of 3.91 per cent.

Similarly, the short-term debt experienced a year-on-year growth of 28.09 per cent, reaching Rs9.52 trillion in May 2024.

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