Centre's debt stocks surge to historic Rs57tr by March-end: SBP
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The State Bank of Pakistan releases latest figures of domestic and external debt
KARACHI (Web Desk) - Overall debt (domestic and external) owed by the federal government soared to Rs57 trillion by the end of March 2023, the State Bank of Pakistan (SBP) reported on Monday.
The government’s total domestic and external debt stocks swelled by 19.42 per cent during the first nine months of this fiscal year (FY23). Cumulatively, the central government’s total domestic and external debt stocks rose to record level of Rs57.122tr at the end of March 23 compared to Rs47.832tr in June 2022, depicting an increase of Rs9.29 tr.
During the period under review, the major increase was witnessed in the external debt mainly due to depreciation of Pakistani rupee against the US dollar. The federal government’s external in rupee terms rose by 32pc or Rs5.29tr to Rs22.04tr at the end of March 2023 up from Rs16.747tr in June 2022.
The current external debt calculated at Rs283.75 to the dollar, while the exchange rate in June last year was Rs204.37. The massive depreciation of Pak rupee to the dollar has largely contributed to the massive surge in external debt.
The centre's domestic debt increased by 12.5pc during the first nine months of this fiscal year. The stocks of domestic dent surged to Rs35.076tr in March 2023 compared to Rs31.085tr in June 2022.
According to the SBP, domestic debt included Rs28.641tr of long-term debt and Rs6.295tr of short-term loan.
