The government has lowered the projected public debt repayment target by nearly 21% to Rs19.05 trillion for the fiscal year 2024-25, reducing the targets for treasury bills (T-bills) and prize bonds.
Public debt payments for the outgoing fiscal year were Rs24.08 trillion, including domestic permanent debt and floating debt.Â
For the next fiscal year, the government plans to cut repayments in the floating debt category, which comprises prize bonds, T-bill auctions, and Maujjal Ijara Sukuk.
The government has set Rs12.51 trillion auction target for T-bills, significantly down from Rs25.34 trillion in 2023-24. However, auctions worth Rs20.61 trillion were held in the outgoing fiscal year.
Like the previous fiscal year, the government does not plan to launch Sukuk bonds for 2024-25. The debt repayment for prize bonds is projected to be around Rs8.99 billion for the next fiscal year, compared to Rs9.01 billion in 2023-24.
In terms of permanent domestic debt, the repayment target is Rs6.53 trillion, compared to Rs3.46 trillion paid in the outgoing fiscal year. The main increase is set for repayments of Rs5.18 trillion for Pakistan Investment Bonds (PIBs) to the banking sector and Rs203.63 billion for PIBs to the non-banking sector.
Ijara Sukuk (Islamic bonds) repayment for FY25 is projected at Rs752.53 billion, compared to Rs274.69 billion in 2023-24.Â
No repayment is scheduled for the 3-year Pakistan Banao Certificates, as they matured in 2023-24, but payments of Rs2.88 billion will continue for the 5-year Pakistan Banao Certificates.
Repayments for foreign exchange bearer certificates, foreign currency bearer certificates, US dollar bearer certificates, and Special US dollar bonds have seen a slight increase.
