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ISLAMABAD: The external debt was recorded at $86.36 billion and domestic debt was recorded at Rs39.7 trillion of the total public debt at the end of September 2023, according to the Debt Policy Statement January-2024 presented in the National Assembly on Thursday.

According to the Debt Policy Statement, around 58 percent of financing of federal fiscal deficit was carried out through domestic sources and 42 percent from external sources.

The government retired around Rs452 billion of stock of short-term debt (T-Bills) and issued Rs2.2 trillion of Pakistan Investment Bonds (PIBs) against the maturity of Rs1.6 trillion and Rs657 billion of Ijara Sukuks against zero maturity.

Jul-Jan debt rises 6pc as govt borrowing continues

The external debt was recorded at $84.1 billion (38 percent) and domestic debt was recorded at Rs38.81 trillion (62 percent) of the total public debt at the end of June 2023.

According to the Debt Policy Statement (January-2024), the long-term debt (more than one year) is $86.2 billion. $7.7 billion debt of Paris Club, $44.9 billion of multilateral, $17.572 billion other bilateral, $7.8 billion debt of Euro/Sukuk Global Bonds, $5.55 billion commercial loans, $560 million Naya Pakistan Certificates and $25 million NBP/ BOC deposits/ PBC, etc. For short-term debt, there is $159 million debt of multilateral.

According to the Debt Policy Statement (January-2024) at the end of June 2023, the long-term debt (more than one year) is $83.89 billion. $7.901 billion debt of Paris Club, $44.49 billion of other bilateral, $17.572 billion, $7.8 billion debt of Euro/Sukuk Global Bonds, $5.564 billion commercial loans, $ 534 million Naya Pakistan Certificates and $28 million NBP/ BOC deposits/ PBC, etc. For short-term debt, there is $160 million debt of multilateral.

The Debt Policy Statement further described that Rs25.55 billion is permanent debt including Rs382.5 million prize bonds, Rs22 .01 billion Pakistan Investment Bonds (PIBs), and Rs3.151 billion government Ijara Sukuk.

The floating debt is Rs9.335 billion, Rs2.93 billion unfunded debt and Rs475 million SBP loan to GOP against SDRs allocation, Rs384 million foreign currency loans.

According to debt policy, during the financial year 2023, total disbursements from external sources amounted to $9.889 billion against the repayment of $14.73 billion.

The disbursements came from multilateral institutions amounted to $ 6.3 billion (around 64 percent) with most of the inflows coming from the Asian Development Bank ($2.3 billion), World Bank ($2 billion), and IMF ($1.2 billion).

Bilateral inflows were $1.4 billion, of which, $1.2 billion was attributed to the Saudi Oil Facility and inflows from foreign commercial banks were $2.2 billion.

Copyright Business Recorder, 2024

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