Pakistan’s domestic debt crossed the Rs. 50 trillion mark by end of October2022.
According to the data released by the State Bank of Pakistan (SBP), thedomestic debt of the country surged to Rs. 50.15 trillion by October 2022as compared to Rs. 40.2 trillion reported by end of the same month lastyear, showing a whopping increase of Rs. 10 trillion in debts merely in oneyear.
During the period, the debt generated through Pakistan Investment Bonds(PIBs) increased to Rs. 19.2 trillion from Rs. 14.7 trillion. Debts raisedthrough Naya Pakistan Certificates soared to Rs.17.6 trillion from Rs. 13.6trillion the last year.
The financing through Government Ijara Sukuk also increased to Rs. 2.4trillion from Rs. 1 trillion.
The upward revision in the policy rate also enhanced the debt and financingfrom domestic sources. Similarly, the federal government’s external debtincreased by 5 percent or $9.037 trillion during the July-October fiscalyear of FY23.
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In October 2022, the government’s external debt stock reached Rs. 17.65trillion, up from Rs. 16.747 trillion in June. The total external debt ismade up of long-term loans worth Rs. 17.419 trillion and short-term loansworth Rs 231.3 billion. According to SBP, the debt’s US dollar exchangerate is calculated at Rs. 220.42 in October 2022, compared to Rs. 204.378in July 2022.
With debt levels crossing beyond-shocking levels on a monthly basis, thegovernment is looking for new financing sources. The Saudi Fund forDevelopment (SFD) recently extended its $3 billion deposits with Pakistanfor another year. The amount was initially deposited by the SFD for oneyear in December 2021 as part of an agreement between the SFD and SBP toreplenish Pakistan’s depleting foreign exchange reserves.
