Home »Top Stories » Government debt stocks touch Rs 21.8 trillion mark

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  • Jan 12th, 2018
  • Comments Off on Government debt stocks touch Rs 21.8 trillion mark
The federal government''''s total debt (domestic and external) stocks continue to rise and reach Rs 21.8 trillion mark in November 2017 mainly due to a rising fiscal imbalance. The State Bank of Pakistan''''s (SBP) statistics revealed on Thursday that the federal government''''s total debt stocks, in term of value, have recorded a sharp increase during the initial months of this fiscal year (FY18) mainly due to continued expansion in fiscal deficit as federal government''''s expenditures are growing more than revenue.

The central government''''s total debt stocks (domestic and external) have posted an increase of 5 percent during July-November of FY18. The central government''''s total debt stocks have reached Rs 21.861 trillion by the end of November 2017 compared to Rs 20.768 trillion as on June 30, 2017, depicting an increase of Rs 1.09 trillion. However, SBP has not included loans from IMF in its statistics.

The current increase has been originated from the raise in domestic as well as external debt. During the period under review, domestic debt posted a surge of some 6 percent, while external debt stocks mounted up by 3 percent.

With an increase of Rs 917 billion, total domestic debt stocks reached Rs 15.766 trillion in November 2017 up from Rs 14.849 trillion in June 2017. Total domestic debt stocks are comprising permanent debt, unfunded debt, floating debt foreign currency loans and short term loans. Domestic debt comprised Rs 7.823 trillion of long term debt and Rs 7.943 trillion of short term debt.

Similarly, the central government''''s external debt soared by Rs 175.4 billion to Rs 6.094 trillion in November 2017 compared to Rs 5.918 trillion in June 2017. This includes long term loans worth Rs 5.986 trillion and short term loans worth Rs 108.3 billion. However, according to SBP, central government''''s external debt excludes IMF loans to Central Bank for balance of payment support, foreign exchange liabilities and includes IMF loan for budgetary support.

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