Pakistan's total outstanding domestic debt rose from Rs 2.13 trillion at the end of June 2005 to Rs 2.269 trillion at the end of December 2005, showing an increase of Rs 135.98 billion (6.38 percent), the provisional data issued by the State Bank of Pakistan (SBP) here, on Thursday said.
Increase in the domestic debt during the first half (July-December) of the fiscal year (2005-06) was mostly from rise in the stocks of floating and un-funded debt. However, permanent debt declined during the period under review.
During the first six months of the fiscal year, the floating debt increased by Rs 148.647 billion and un-funded debt increased by Rs 3.49 billion, whereas permanent debt declined by Rs 16.154 billion.
Permanent domestic debt comprising medium- and long-term market loans, federal government loans, special government loans, federal instruments and prize bonds stands at 484.72 billion, which was Rs 500.87 billion at the end of the fiscal year.
The floating domestic debt, mainly comprising short-term debt instruments and market treasury bills, maintaining a climbing trend, was recorded at Rs 778.16 billion at the end of June 2005. And, during the following six months, it went up to Rs 926.81 billion.
The data also showed that the un-funded domestic debt comprising National Savings Schemes (NSS) stands at Rs 857.54 billion, showing a growth of Rs 3.49 billion from Rs 854.04 billion at the end of June 2005.
However, it said that the net mobilisation under all instruments of the NSS, except relatively new instruments, ie, Bahbood Saving Certificates, Postal Life Insurance and Pension Benefit Accounts, were once again in the negative column during the period.
Net withdrawals from these three most popular instruments of the NSS, ie, 10-year Defence Saving Certificates (DSCs), five-year Regular Income Certificates (RICs) and three-year Special Saving Certificates (SSCs) were Rs 43.105 billion in six months of this fiscal year. It revealed the previously popular instruments, DSCs, SSCs and RICs, seem to have become less attractive for the investors.
Besides, withdrawals from special saving accounts, saving accounts and general prevalent (GP) fund during the period under study were Rs 1.293 billion, Rs 1.892 billion and Rs 142 million, respectively.
The SBP data showed that Bahbood Saving Certificates, Pensioners Benefit Accounts and Postal Life Insurance attracted net fresh investment of Rs 35.478 billion, Rs 10.201 billion and Rs 4.242 billion, respectively.
Net investment in NSS fell primarily because their rates of return had become too low for the investors to make fresh investment as a result of gradual slashing of profit during the last few years.
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