Pakistan’s total government domestic debt and liabilities surged by 17.71% to reach Rs49 trillion in November 2024, compared to Rs41.53 trillion in the same period last year, according to the latest data released by the State Bank of Pakistan (SBP).
On a month-on-month basis, domestic debt and liabilities rose by 2.85% from Rs47.53 trillion in October 2024.
The bulk of the debt is categorised as permanent debt, amounting to Rs35.64 trillion, reflecting a 19% year-on-year increase. This includes Rs32.77 trillion in federal government bonds, Rs475 billion from SBP’s on-lending to the government against Special Drawing Rights (SDRs), Rs393 billion in prize bonds, and Rs3 billion in market loans.
Floating debt, which primarily consists of Market Treasury Bills, recorded a sharp increase of 26.4% to Rs9.63 trillion, compared to Rs7.62 trillion in November 2023.
Conversely, the government’s unfunded debt showed a minor 1% decline year-on-year to Rs2.85 trillion during the period.
Foreign currency loans dropped by 2.5%, amounting to Rs373 billion in November 2024 compared to Rs383 billion a year earlier. Borrowing through Naya Pakistan Certificates saw a significant year-on-year decline of 37.25%, standing at Rs792 billion, although it rose marginally by 4.17% on a month-on-month basis.
In a rare positive sign, the government’s domestic liabilities dropped sharply by 46.73% year-on-year, reported at Rs310 billion for November 2024.
The rise in domestic debt highlights persistent fiscal challenges as Pakistan navigates an era of heightened borrowing to address budgetary deficits. While certain categories of liabilities saw reductions, the overall debt burden underscores the need for structural reforms to ensure sustainable fiscal management and reduce reliance on short-term borrowing instruments.
