Pakistan’s gross domestic debt and government liabilities rose 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 from the State Bank of Pakistan (SBP).
On a monthly basis, domestic debt and liabilities rose by 2.85% from Rp47.53 trillion in October 2024.
The bulk of debt is classified as permanent debt, amounting to Rp 35.64 trillion, reflecting a 19% increase year-on-year. This includes 32.77 trillion rupees of federal government bonds, 475 billion rupees of the State Bank of Pakistan’s lending to the government against Special Drawing Rights, 393 billion rupees of prize bonds, and 3 billion rupees of market loans.
Floating debt, which mainly consists of market treasury bills, registered a sharp increase of 26.4% to 9.63 trillion rupiah, compared to 7.62 trillion rupiah in November 2023.
Conversely, unfunded government debt showed a slight decline of 1% year-on-year to Rs 2.85 trillion during the period.
Foreign currency loans decreased by 2.5%, reaching 373 billion rupees in November 2024 compared to 383 billion rupees the previous year. Borrowing through Naya Pakistan certificates saw a significant year-on-year decline of 37.25%, to Rs792 billion, although it rose marginally by 4.17% month-on-month.
In a rare positive sign, the government’s domestic liabilities fell sharply by 46.73% year-on-year, reaching Rs310 billion in November 2024.
The rise in domestic debt highlights persistent fiscal challenges at a time when Pakistan is going through an era of increased borrowing to address its budget deficit. While some categories of liabilities saw reductions, the overall debt burden highlights the need for structural reforms to ensure sustainable financial management and reduce reliance on short-term borrowing instruments.