KARACHI: The federal government’s total debt stock decreased by Rs 456 billion in October 2024, largely attributed to the record profit transfer from the State Bank of Pakistan (SBP) and continued debt servicing.
According to the SBP’s latest data released on Wednesday, the central government’s total debt, including both domestic and external components, dropped to Rs 69.114 trillion in October 2024 from Rs 69.570 trillion in September 2024.
Previously, the federal government’s total debt surpassed the Rs 70 trillion mark in August, the reduction began after the SBP transferred an unprecedented profit of over Rs 3 trillion to the government.
MoM basis: Sept debt stocks drop Rs792bn on SBP profit
A detailed analysis revealed a decline in both domestic and external debt stocks, with the domestic debt registering the more significant reduction.
Borrowings from domestic resources decreased by Rs 305 billion, falling to Rs 47.231 trillion in October 2024 down from Rs 47.536 trillion in September 2024.
The external debt stock in rupee terms dropped by Rs 150 billion during October, standing at Rs 21.884 trillion at the end of the month compared to Rs 22.034 trillion in September 2024. The marginal movement in the exchange rate had a negligible impact on the external debt calculation, with the Weighted Average Customer Exchange Rate for the US dollar at Rs 277.7488 in September and Rs 277.8517 in October.
However, the central government debt Year-to-Date basis is witnessed increasing trend. Despite the monthly decline, the cumulative debt for the federal government has risen by Rs 200 billion since June 2024, increasing from Rs 68.914 trillion to Rs 69.114 trillion in October 2024.
Analysts said that this is an encouraging trend and need for continued measures to manage debt sustainably in the face of economic challenges.
Copyright Business Recorder, 2024
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