The debt trap of the Pakistani economy continues as State Bank of Pakistan in its latest report has stated that the federal government’s domestic debt increased by 11.7 percent to Rs 24,780 billion in February 2021 as compared to February 2020.
Despite an increase in revenue collection throughout the year, domestic debt increased by Rs 2,596 billion, or 11.7%, from Rs 22,184 billion in February 2020, reflecting increased spending and a growing deficit budgetary.
According to the latest SBP data, the local rupee denominated debt of the federal government increased 6.4% by Rs 1,498 billion in eight months (June’2020-February’2021) of the current fiscal year. Domestic debt was at Rs 23,282 billion in June 2020.
However, the total debt of the federal government, including external debt, grew by 9.6% in the last 12 months.
Total debt, including external debt, increased to Rs 36,612 billion in February 2021 from Rs 33,417 billion in February 2020, an increase of Rs 3,195 billion or 9.6%.
Total debt growth for the current fiscal year 21 was significantly low as it increased by 4.3% or Rs 1,505 billion in 8 months of fiscal 21 years.
External debt (in rupees) has not increased to any significant level during the current fiscal year 21, as it reached 11,832 billion rupees on February 21, up from 11,232 billion rupees on February 20, an increase of 600 billion rupees in the last 12 months. .