ISLAMABAD:- The Federal Government’s debt stock was swelled by Rs.7.16 trillion or 15 percent to Rs.54.94 trillion mainly due to free fall depreciation of Pakistani Rupee against US dollar and government borrowing to run the government affairs during the first seven months of the current fiscal year.
The State Bank of Pakistan (SBP) has issued monthly report on Central Government Debt Stock during the first seven months of the current fiscal year. According to the report, the total debt stock of the federal government excluding IMF and other financial obligations increased from Rs.47.784 trillion to Rs.54.942 trillion d during the first seven months of the current fiscal year.
The central government domestic debt was increased by Rs.3218 or 10 percent from Rs.31.037 trillion to Rs.34.255 trillion and external debt was increased by 3.940 trillion or 23 percent from Rs.16.747 trillion to Rs.20.687 trillion during the first seven months of the current fiscal year, according to the report.
The data shows that the long term central government domestic debt was increased by Rs.3326 billion from Rs.24.188 trillion to Rs.27.514 trillion, however, the short term local public debt was decreased by Rs.113 billion from Rs.6.804 trillion Rs.6.691 trillion during the first seven months of the current fiscal year.
The central govt has raised Rs.3.594 trillion through Pakistan Government Bonds including Pakistani Investment Bonds, GOP Ijara Sukuk and. Its obligations was increased from Rs.19,991 billion to Rs.23,585 billion during the first seven months of the current fiscal year. The govt financial obligations of the GOP Ijara Sukuk were increased Rs.2,280 billion to Rs2654 billion and obligations of PIBs were increased from Rs.17.687 trillion to Rs.20,906 brilion during the period.
The govt has raised Rs.7 billion from Prize Bonds during the seven months which was increased to Rs.381 billion during the first seven months of the current fiscal year.
The financial obligations of the SBP’s on-lending to GOP against SDRs allocation (SDR 1.95 billion) equivalent to PKR 474.94 billion from Nov-21 remained 474.9 billion during the seven months.
The debt stock of the unfunded debt was decreased by Rs277 billion from Rs.3,336 billion to Rs.3,058 billion due to repayments of dues related to National Savings Schemes, Postal Life Insurance and GOP funds during the first seven months of the current fiscal year. The data shows that the obligations of the National Savings were narrowed from Rs3,208 billion to Rs.2,948 billion, Postal Life Insurance remained at Rs47.2 billion and GP Fund was decreased by Rs17 billion from Rs.80 billion to Rs.63 billion during the period.
In short term local loan, the government debt against Market Treasury Bills was decreased by Rs.125 billion from Rs.6.752 trillion to Rs.6.627 trillion during the first seven months of the current fiscal year, the data shows.
The Federal Government’s external debt was increased by 23 percent to Rs.20.687 trillion mainly due to heavy borrowing to bridge the budget deficit and free fall of depreciation of local currency against the US$ during the first seven months of the current fiscal year.
According to the data, released on last month, the country’s foreign debt was decreased from $130 billion to $126 billion during the first half of the current fiscal year.
The data shows that the UD dollar was appreciated by Rs.61 mainly due to free fall of depreciation of forex reserves of the State Bank of Pakistan as the government failed to revive the IMF loan program which is almost suspended from last four months. The International creditors including International Organizations and different friendly countries are not ready to give money due to suspension of IMF Program.
According to the data of State Bank of Pakistan, the SBP’s forex reserves were decreased by $6.7 billion from $9.8 billion to $3.11 during the first seven months of the current fiscal year. The data shows that the 68 percent forex reserves held by SBP were squeezed during the first seven months of the current fiscal year.