Karachi, January 5, 2024 – Pakistan Central Government’s debt situation has been revealed in the latest figures, indicating a total debt of Rs 63.4 trillion as of November 2023.
The provisional data, released by the State Bank of Pakistan (SBP) on Friday, provides a comprehensive breakdown of both domestic and external debt instruments.
Domestic Debt:
As of November 2023, the Central Government’s domestic debt stands at Rs 40.96 trillion, with a notable increase from the previous months. The breakdown of the domestic debt includes both long-term and short-term instruments.
1. Long-Term Debt:
• The long-term portion of the debt accounts for Rs 33.21 trillion. This includes Permanent Debt, comprising market loans, federal government bonds, GOP Ijara Sukuk, Bai-Muajjal of Sukuk, Pakistan Investment Bonds (PIBs), and others.
• Permanent Debt has seen a consistent rise, reaching Rs 29.94 trillion in November 2023.
2. Unfunded Debt:
• The unfunded debt, categorized as short-term, amounts to Rs 2.88 trillion. This includes savings schemes (net of prize bonds), postal life insurance, GP Fund, and foreign currency loans.
3. Short-Term Debt:
• The short-term debt, totaling Rs 7.62 trillion, primarily comprises floating debt, market treasury bills, MTBs for replenishment of cash, and Naya Pakistan Certificates.
External Debt:
The Central Government’s external debt stands at Rs 22.43 trillion, with Rs 22.04 trillion falling under the long-term category and Rs 29.8 billion under the short-term category.
Naya Pakistan Certificates:
A notable mention is the Naya Pakistan Certificates, introduced to attract investment from overseas Pakistanis. The certificates, totaling Rs 125.5 billion, have gained popularity among investors.
The increase in both domestic and external debts reflects the government’s ongoing efforts to meet its financial obligations, invest in development projects, and manage the economic challenges. The long-term nature of a significant portion of the debt suggests a strategic approach in financing initiatives for sustained economic growth.
While the government grapples with economic complexities, the detailed breakdown of the Central Government’s debt provides transparency and insight into the country’s fiscal management. As the economic landscape evolves, stakeholders will closely monitor these figures, looking for signs of prudent financial management and sustainable economic development.
