According to the latest data released by the State Bank of Pakistan (SBP), the government’s domestic debt and liabilities have experienced a substantial year-on-year (YoY) increase of 24.33% in July 2023, reaching Rs39.72 trillion. This marks a notable rise compared to the Rs31.95 trillion recorded in July 2022.

On a month-on-month (MoM) basis, the total government domestic debt and liabilities have seen a modest uptick of 0.18% when compared to the Rs39.65 trillion reported in June 2023.

Breaking down the composition of this debt, a significant portion consists of permanent debt, amounting to Rs26.26 trillion, representing a substantial YoY growth of 28.08%. This category includes Rs25.41 trillion in federal government bonds, Rs474.9 billion in the State Bank of Pakistan’s on-lending to the government of Pakistan against SDRs allocation, Rs382 billion in prize bonds, and the remaining Rs2.8 billion in market loans.

Meanwhile, the floating debt has risen by 27.14% YoY in July, reaching Rs9.29 trillion, compared to Rs7.31 trillion during the same period last year. The bulk of this debt, amounting to Rs9.22 trillion in July 2023, comes from Market Treasury Bills.

Conversely, the government’s unfunded debt has decreased by 9.84% YoY to Rs2.94 trillion in July 2023. This decline is primarily attributed to a significant drop of 9.58% in savings schemes, which amounted to Rs2.83 trillion compared to Rs3.13 trillion in the corresponding period last year.

Foreign currency debt has seen a substantial increase, totaling Rs384.7 billion in July 2023. This is a significant rise compared to the Rs10.1 billion recorded in July 2022 and the Rs383.8 billion in June 2023.

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