The debt stock of the Federal Government increased by Rs. 4.06 trillion to Rs. 42.76 trillion during the first eight months (July-Feb) of the current fiscal year.
This increase is mainly due to external loans, which increased because of currency devaluation.
The PTI government has added over Rs. 18 trillion to the public debt during its three and a half year tenure, which is more than any government in past.
The International Monetary Fund (IMF) loan, deposits by friendly countries, and other government guarantees are not included in this debt stock.
According to the latest report released by the State Bank of Pakistan, the government’s debt stock witnessed an increase of Rs. 4.062 trillion, taking it from Rs. 38.699 trillion to Rs. 42.761 trillion during the first eight months of FY22.
The report details that the external debt swelled by Rs. 2.622 trillion from Rs. 12.434 trillion to Rs. 15.056 trillion during the said period. The external debt stock was up mainly due to currency depreciation. The US Dollar increased against PKR by Rs. 20 during the first eight months, taking the dollar from Rs. 157 to Rs. 177.
Currently, the US Dollar has crossed Rs. 185 in the interbank market, which will further increase the debt burden on the country. Some analysts believe that devaluation of one rupee adds Rs. 130 billion in foreign debt and liabilities on the country.
The report also shows that the government’s domestic debt increased by Rs. 1440 billion, rising from Rs. 26.265 trillion to Rs. 27.705 trillion during the said period.
Out of total Central Government Domestic Debt, the long-term debt has increased by Rs. 2,584 billion from Rs. 19.557 trillion to Rs. 22.141 trillion during the July-February period of FY22. The short-term debt of the Federal Government registered a decrease of Rs. 1,157 billion, taking it from Rs. 6,680.4 billion to Rs. 5,523.7 billion during the said period.
The debt of the Federal Government against the Naya Pakistan Certificates also increased by Rs. 12.5 billion, taking it from Rs. 28.2 billion to Rs. 40.7 billion during eight months of the current fiscal year.
