KARACHI: Central government debt increased to PKR47.8trn after increasing 7% in a month during June 2022 making the PKR 3,145 bn jump in the total debt the highest ever monthly increase.
Pakistan’s total debt-to-GDP ratio increased to 71.4% as of June 2022 compared to 69.4% as at June 2021.
The total debt rose by 23.5% on a year-on-year (YoY) basis.
On a YoY basis, the government increased its reliance on long term debt, primarily permanent debt in the form of bonds issued by the federal government which witnessed a 29.3% jump. It has also significantly increased its foreign currency loans by 29.3% in the same period. A rise in the Naya Pakistan Certificates also pushed the debt numbers up.
However, on a month-on-month (MoM) basis, the government has increased its dependence on short term debt, witnessing a 20.5% jump.
Moreover, external debt also grew by 34.6% YoY and 7.4% MoM.