Central government domestic debt increased by Rs829 billion to Rs24.11 trillion in the first five months of the current fiscal year, but the trend shows that the pace of borrowing has been slower in FY21 than what it was during the previous fiscal year.
According to a report by Dawn that analysed State Bank of Pakistan’s (SBP) latest data, domestic debt in November 2019 was Rs21.41tr which jumped to Rs24.11tr in November 2020, an increase of Rs2.7tr.
The data showed that the government’s domestic debt and liabilities collectively increased by Rs2.75tr in November 2020 since November 2019. Most of the domestic debt, over 50 per cent, was mobilised through Pakistan Investment Bonds (PIBs). The government raised Rs14.033tr through PIBs till November 2020, an increase of Rs1.827tr during the last 12 months.
However, it increased by Rs1.147tr in five months reflecting that the government borrowed aggressively during FY21.