Pakistan's debt reaches unprecedented level of history
LAHORE: The State Bank of Pakistan (SBP) on Monday released data pertaining to central government debt which rose to Rs23.769 trillion during first 11 months (July-May) of FY18, registering an 11 percent increase during this period.
At the end of FY17 (June 2017), the debt was recorded at Rs20.767 trillion, posting an increase of Rs3.002 trillion till May 2018 largely driven by rising domestic and foreign borrowing amidst increasing twin deficits.
As per the central bank data released, the government continued to depend upon domestic sources of borrowing, largely commercial banks.
Domestic debt jumped to Rs16.4 trillion by end of May this year compared to Rs14.8 trillion at end of June 2017. The overall rise in domestic debt was driven by short-term debt but long-term debt exhibited a fall during the first 11 months (July-May) of FY18, as per the composition of domestic debt.
The short-term debt constituted of shorter tenor instruments largely market treasury bills (MTBs) increased to Rs8.9 trillion by end-May 2018 against Rs6.5 trillion at end of June 2017.
Long-term debt exhibited a fall during this period, touching Rs7.7 trillion in May 2018 against Rs5.9 trillion in end-June 2017.
According to SBP data, the government obtained Rs4.081 trillion from commercial banks via commercial bank by end of May 2018 against Rs4.082 trillion in end-June 2017.