ISLAMABAD:- The Federal Government’s debt stock excluding IMF loan and other liabilities swelled by 10 percent (Rs3.7 trillion) to Rs42.4 trillion mainly due to currency devaluation and heavy reliance on external borrowing during the first seven months (July-January) of the current fiscal year.

The current government borrowing trend is showing that government borrows Rs17.6 billion per day to meet the financial requirements for running its daily affairs.

According to the State Bank of Pakistan, the federal government’s debt ballooned by Rs3695 billion to Rs42,394 billion from 38,699 billion during the first seven months of the current fiscal year.

 The Federal Government’s domestic debt increased from Rs 26,265 billion to Rs27412 billion especially due to GOP ijara sukuk 3 years and 5 years during the first seven months of the current fiscal year. It shows that the government borrowed Rs1146 billion fresh loans from the local market during the period.

The long term domestic debt of the federal government was increased and short term debt decrease which shows the government has adopted a policy of long term financing instead of short term financing.

The long term domestic debt also increased by Rs2111 billion to Rs21.668 trillion during the first seven months of the current fiscal year.

Out of total domestic public debt, the Ijara sukuk swelled by Rs818 billion to Rs1483 billion from Rs665 billion during the period. The government has raised Rs998 billion from issuing Pakistan Investment Bonds in seven months of the current fiscal year.

The government’s liabilities against the Pakistan Investment bonds increased to Rs15.588 trillion from Rs14.590 trillion during the above mentioned period.

The government debt against the Bai-muajjal of Sukuk narrowed by Rs73 billion to Rs128 billion from Rs201 billion during the seven months of the current fiscal year.

 The report also shows that the government’s debt stock also decreased against Prize Bonds by Rs 82 billion to Rs372 billion from Rs444 billion during the period.

The federal government has also raised Rs 475 billion against the State Bank of Pakistan’s on-lending to Government of Pakistan (allocation of 1.95 billion SDR).

The total unfunded debt slightly decreased by Rs37 billion from Rs.3646 billion to Rs.3609 billion during the seven months. Out of total unfunded debt, the debt stocks against saving schemes decreased by Rs25 billion from Rs3498 billion to Rs3473 billion, debt stock of GP Fund also decreased by Rs12 billion from Rs 101 billion to Rs89 billion during the period.  

The short term borrowing through market treasury bills also squeezed by Rs976 billion to Rs5704 billion from Rs6680 during the first seven months of the current fiscal year. It shows that the government has retired Rs976 billion loans which was raised from T bills in past.

 The PTI led federal government also raised more than Rs 12 billion debt through Naya Pakistan Certificates. The stock of this debt mounted to Rs 40 billion up to January 2022.

The report also shows that the external debt of federal government was increased by Rs2.449 trillion to Rs14.983 trillion mainly due to currency devaluation during the first seven months of the current fiscal year.

The report shows that, on average, Pak Rupee depreciated by Rs20 from Rs 157 to Rs177 per USD during the first seven months of the current fiscal year. The currency devaluation has increased the burden of external debt around Rs 1.5 trillion during the first seven months of the current fiscal year.

It is pertinent to mention here that the IMF loan, deposit from China and Saudi Arabia to build foreign exchange reserves and other government guarantees are not included in this debt stock.  

By adminmy

Leave a Reply

Your email address will not be published.