KARACHI: The federal government’s total debt stocks rose to a historic level of Rs 40.9 trillion by the end of November 2021.
The State Bank of Pakistan (SBP) Wednesday reported that the country’s domestic and external debt went up by 6 percent during July-Nov of this fiscal year (FY22).
The central government’s total domestic and external debt stocks touched a new peak of Rs 40.973 trillion in November 2021 up from Rs 38.699 trillion in June 2021, depicting an increase of Rs 2.27 trillion.
Analysts said that the federal government’s borrowing to fill the rising fiscal gap has resulted in massive debt stocks. Major borrowing by the federal government was made for the foreign resources that reflect the federal government’s reliance on domestic resources is very minimal, they added.
PTI govt to make $55bn debt payment during its tenure: Fawad Chaudhry
However, they said, the monetary tightening and increase in the interest rates will result in higher servicing cost in coming months.
According to the SBP, a major surge was recorded in external debt, which rose by 17 percent. The central government’s external debt reached Rs 14.146 trillion in November 2021 compared to Rs 12.434 trillion in June 2021, showing an increase of Rs 1.71 trillion in the first five months of this fiscal year. External debt comprised Rs 13.944 trillion of long-term debt and Rs 202.6 billion of short-term debt.
The federal government’s domestic debt increased by Rs 560 billion to Rs 26.827 trillion in November 2021, up from Rs 26.265 trillion in June 2021.
The total domestic debt stocks are composed of permanent debt, unfunded debt and floating debt.
Out of total domestic debt, long term debt stood at Rs 20.993 trillion, and short-term loans Rs 5.793 trillion. Permanent debt stood at Rs 17.366 trillion, unfunded debt Rs 3.62 trillion and foreign currency loans Rs 7.5 billion.
Copyright Business Recorder, 2021
Comments
Comments are closed.