Federal govt debt rises by Rs3.9 trillion in 2024

The federal government’s reliance on loans continued in 2024, with its total debt increasing by Rs3,919 billion during the year, according to a document released by the State Bank of Pakistan (SBP). 

The rise was attributed to a significant increase in domestic debt, while foreign debt saw a reduction.

Data from the SBP revealed that the federal government’s domestic debt grew by Rs4,632 billion in 2024, while foreign debt decreased by Rs710 billion. 

As of October 2024, the total government debt stood at Rs69,114 billion, with domestic debt at Rs47,231 billion and foreign debt at Rs21,884 billion.

Comparing the figures with December 2023, the total federal government debt then stood at Rs65,195 billion, comprising Rs42,595 billion in domestic debt and Rs22,600 billion in foreign debt. 

However, updated figures for November and December 2024 are yet to be released.

The increase in domestic borrowing highlights the government’s ongoing dependence on local financial sources, even as it manages to reduce its external debt obligations. Further details on the debt trajectory for the remaining months of 2024 are awaited.