Pakistan’s domestic debt tops Rs3tn


KARACHI: Pakistan’s domestic debt, which stood at Rs2.601tn at the end of last financial year, went up to Rs3.073tn at the end of April this year.

The country’s domestic debt rose by Rs471.926bn or 18.14% during the first ten months of the current financial year as the government scrambled to cover fiscal deficit that expanded beyond estimates.

The government borrowings through MTBs for replenishment have been extraordinarily large during this year. The government borrowed Rs467.25bn through this instrument during July-April 2007-08.

It is likely that the figure will be even higher at the end of this financial year because the government continues to borrow heavy amounts from the State Bank of Pakistan to meet its expenses. The floating debt rose by Rs353.185bn. The government repaid Rs114.064bn borrowed earlier through treasury bills.


The permanent debt of the country rose by Rs54.02bn due to inflows of Rs57.466bn through sale of Pakistan Investment Bonds and Rs8.5bn through sale of prize bonds. Debt previously accumulated under some other heads was repaid.
The un-funded debt of the country surged by Rs64.717bn.

Bahbood Savings Certificates attracted Rs36.208bn and Rs12.972bn was invested in Special Saving Certificates (Reg). An inflow of Rs17.655bn was recorded in Pensioners’ Benefit Accounts. Outflows from some certificates and accounts were also recorded.