Central Government Debt Surges by 24.39% YoY to Reach Rs63.39 Trillion in November
Analyzing the data further, it shows a YoY increase of 11.3% in short-term debt, although there was a 15.18% MoM decrease.
Karobar
In November 2023, the central government's total debt witnessed a substantial YoY surge of 24.39%, reaching Rs63.39 trillion, up from Rs50.96 trillion recorded in November 2022, according to data released by the State Bank of Pakistan (SBP).
Furthermore, on a month-on-month basis, the central government debt exhibited a 1.45% increase compared to Rs62.48 trillion in October 2023.
This year-on-year escalation in the debt burden is predominantly linked to increased borrowings from both domestic and foreign sources, aimed at mitigating the fiscal deficit.
SBP's data reveals that the major share of the debt, amounting to Rs40.96 trillion, is domestic. This includes Rs33.21 trillion in long-term debt and Rs7.62 trillion in short-term debt, with the remaining Rs22.43 trillion constituting external debt.
In comparison to the previous year and month, domestic debt has witnessed a 24.16% YoY increase and a 1.35% MoM increase.
By the end of November 2023, the government's long-term debt had surged by 27.55% YoY, reaching Rs33.21 trillion compared to Rs26.03 trillion recorded in the corresponding period a year ago.
Within the long-term domestic debt category, Pakistan Investment Bonds (PIBs) continued to dominate, accounting for Rs24.98 trillion and reflecting a growth of 28.33% YoY and 8.28% MoM.
On the other hand, Market Treasury Bills (MTBs) comprised Rs7.54 trillion in short-term domestic debt, rising by 11.05% YoY but experiencing a significant 15.33% MoM decline on a sequential basis.
Borrowing through Naya Pakistan Certificates showed a YoY increase of 23.27%, but a MoM decrease of 2.53%, standing at Rs125.55 billion in November 2023.
Breaking down the central government's external debt, nearly Rs22.4 trillion originated from long-term loans, while Rs29.76 billion came from short-term loans.
