On April 04, 2024, the latest data released by the State Bank of Pakistan indicates that the total government domestic debt and liabilities have risen by 24.19% year-on-year to reach Rs43.16 trillion in February 2024, compared to Rs34.75 trillion recorded in February 2023.
Compared to the Rs43.16 trillion recorded in January 2024, domestic debt and liabilities have remained relatively stable on a sequential basis.
As per the State Bank of Pakistan (SBP) data, the predominant portion of the debt comprised permanent debt, amounting to Rs31.44 trillion, reflecting a year-on-year increase of 27.31%.
This consisted of Rs30.58 trillion in federal government bonds, Rs474.94 billion in the State Bank of Pakistan’s on-lending to the government of Pakistan against SDRs allocation, Rs383.13 billion worth of prize bonds, and the remaining Rs2.84 billion in market loans.
The floating debt increased by 26.35% year-on-year in February, reaching Rs7.95 trillion compared to Rs6.29 trillion in the corresponding period last year.
Market Treasury Bills accounted for the majority of the total floating debt, amounting to Rs7.87 trillion in February 2024.
Conversely, the government’s unfinanced debt decreased by 7.27% annually to reach Rs2.8 trillion in February 2024.
This decline was mainly attributed to a substantial reduction of 6.89% year-over-year in saving schemes, which totaled Rs2.71 trillion compared to Rs2.92 trillion in the previous year.
Foreign currency loans experienced a substantial growth, reaching Rs374.59 billion in February 2024, contrasting with the Rs11.01 billion recorded in February 2023.
In February 2024, the utilization of Naya Pakistan Certificates for borrowing experienced a decrease of 23.76% annually, resulting in a total of Rs99.19 billion.
Consequently, there was a 4.26% decrease month-over-month in February, as it dropped to Rs103.6bn from the Rs103.6bn recorded in January.
In the upcoming period, the government’s domestic obligations decreased by 17.91% compared to the previous year, amounting to Rs490.95 billion during the recent assessment period.
