ISLAMABAD (Eshfak Mughal): The total public debt stock of the federal government was increased by 39 percent to Rs 61.747 trillion during the tenure of 16 months of former premier Shehbaz led PDM government mainly due to free fall of local currency against USD and heavy borrowing from local sources.
According to the monthly data issued by the State Bank of Pakistan (SBP), the debt stock was increased to Rs. 61.747 trillion in July 2023 as compared to Rs.44.366 trillion in March 2022.
The Pakistan Democratic Movement (PDM) and Pakistan Peoples Party (PDM) have ousted former prime minister Imran Khan from from power through No Confidence Motion on 11th April 2022. Former Chief Minister Punjab and President Pakistan Muslim League (PML N) Shehbaz Sharif was elected as Prime Minister on very next day with the support of PDM and PPP in Parliament.
The data shows that the public debt was increased by over from Rs17 trillion during the tenure of Shehbaz regime in just 16 months. The central government debt was swelled by around Rs.19 trillion during the 44 months of the Imran government.
The data shows that the free fall of depreciation of local currency against green back note has added government debt stock.
Around 16 months, USD was appreciated by Rs.103 from Rs.183 to Rs.286 billion, according to the calculation of the State Bank. The external debt in terms of Pak Rupee was increased despite the fact that the it was decreased in USD terms during the PDM government.
According to the the data, the external debt stock was $88.765 billion (Rs 16,290 billion) with the rate of Rs.183 in March 2022.
The external debt was decreased by around $10 billion to $79 billion from $88.76 billion during the 16 months due to stalled loan program of International Monetary Fund (IMF). Contrary of the fact the external debt stock was increased from Rs.16.290 trillion to Rs.22.666 trillion in July 2023 due to steep fall of value of local currency.
The data shows that the depreciation of Pak Rupee by Rs.103 against USD added up Rs.6376 billion in sixteen months despite the decrease of $10 billion.
On a month-on-month basis, the total public debt stock of the federal government increased by Rs. 907 billion from Rs. 60.840 trillion recorded in June 2023 to Rs.61.747 trillion in July 2023.
The data shows that the domestic debt of the central government increased by 25.1 percent from Rs. 31.192 trillion in July 2022 to Rs. 39.016 trillion in July 2023.
Out of total domestic debt, the long-term public debt increased from Rs. 23.776 trillion to Rs. 29.588 trillion and the stock of short-term debt increased from Rs. 7.306 trillion to Rs. 9.289 trillion during the last year.
Out of the total long-term debt, the government raised Rs. 5.75 trillion through Federal Government Bonds including Pakistan investment bonds and GOP Ijara Sukuk and Bai-Muajjal of Sukuk during the last year. The total debt stock of Federal Government Bonds increased from Rs. 19.655 trillion to Rs. 25.405 trillion. The government raised Rs. 8 billion through issuing of Prize Bonds in one year.
The public debt remained at the same level of Rs. 475 billion in terms of SBP’s on-lending to GOP against SDRs allocation. The unfunded debt decreased to Rs. 2,938 billion from Rs. 3,259 billion. Foreign currency loans jumped to Rs. 385 billion from Rs. 10 billion during the period.
The report shows that the external debt of the central government increased to Rs. 22.732 trillion from Rs 19.375 trillion during the period, registering an increase of 17.3 percent.