KARACHI: The federal government’s total debt stocks reached Rs 70.37 trillion mark by the end of November 2024, primarily driven by ongoing borrowing to cover the fiscal deficit, according to the latest report from the State Bank of Pakistan (SBP).
The central government’s debt, encompassing both domestic and external borrowings, rose by 2 percent in the first five months (July-Nov) of the fiscal year 2024-25 (FY25). The debt stock increased by Rs 1.452 trillion, climbing from Rs 68.914 trillion in June 2024 to Rs 70.366 trillion in November 2024.
During the review period, a significant increase was observed in domestic debt, which rose by 3 percent. In absolute terms, the central government’s borrowings from domestic sources grew by Rs 1.425 trillion, reaching Rs 48.585 trillion in November 2024, up from Rs 47.160 trillion in June 2024. This domestic borrowing comprised Rs 38.869 trillion in long-term loans and Rs 9.637 trillion in short-term loans.
Oct govt debt stock drops Rs456bn to Rs69.114trn MoM
External debt, measured in rupee terms, saw a slight rise of Rs 25 billion during the first five months of FY25, bringing the total external debt to Rs 21.780 trillion by the end of November 2024, compared to Rs 21.754 trillion in June 2024.
According to the State Bank of Pakistan (SBP), the Weighted Average Customer Exchange Rate for the US dollar was Rs 278.0737 in November 2024, slightly down from Rs 278.7742 in July 2024.
Analysts noted that, in the absence of significant external borrowing, the federal government is increasingly dependent on domestic resources to meet its financial needs. The SBP has transferred over Rs 3 trillion profit to the federal government that provided support on the fiscal side.
Meanwhile, the federal government has planned to borrow an amount of Rs 5.25 trillion through sale of long-term and short-term security papers during the next three months (Jan-March 2025).
According to the auction calendar issued by the SBP, an amount of Rs 2.2 trillion will be raised through sale of Government of Pakistan Market Treasury Bills (MTBs) and an amount of Rs 3.05 trillion against auction of Pakistan Investment Bonds.
Fiscal operations have shown improvement in both the overall and primary balances during the first quarter of FY25, however, the SBP believed that considerable efforts and additional measures would be required to meet the annual revenue target.
In August last year, the IMF also approved a $7 billion long term loan programme to further support Pakistan’s economy. The arrival of these and other expected foreign inflows will increase the country’s external debt burden.
Copyright Business Recorder, 2025
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