Over Rs 10 trillion Debt increases on Pakistan in last one year: report
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The federal government's accumulated debt has surged to nearly Rs60 trillion, with the primary cause being extensive borrowing from both domestic and foreign sources to address the fiscal deficit.
According to data from the State Bank of Pakistan (SBP), the government's total debt has witnessed a substantial year-on-year increase of 22.11%, reaching Rs61.75 trillion in July 2023, compared to Rs50.57 trillion in July 2022.
Furthermore, on a month-to-month basis, the government's debt load experienced a 1.49% sequential rise, climbing to Rs60.84 trillion in June 2023. This mounting debt burden can predominantly be attributed to the continued reliance on borrowing, both domestically and internationally, to offset the fiscal deficit.
Analyzing the composition of this debt, the central bank's data indicates that a significant portion of it, amounting to Rs39.02 trillion, is domestically accrued. This figure demonstrates a substantial year-on-year growth of 24.08%. Within this domestic debt, Rs29.59 trillion represents long-term obligations, while Rs9.29 trillion is categorized as short-term debt. In contrast, the remaining Rs22.73 trillion is external debt.
By the end of July 2023, the government's long-term debt saw an impressive year-on-year increase of 24.44%, totaling Rs29.59 trillion, compared to Rs23.78 trillion recorded during the same period the previous year. Similarly, short-term debt experienced a substantial 27.14% year-on-year increase, rising to Rs7.31 trillion in July 2022. These figures illustrate the growing challenges the government faces in managing its debt obligations
