Total debt jumps by Rs4tr in a month

The central government debt jumped by Rs4 trillion, or around 7.7 per cent, in January to reach close to Rs55tr, the State Bank of Pakistan (SBP) data showed on Tuesday. The figure was Rs42.39tr in January 2022, which means it has increased by 30pc over the past year. Meanwhile, domestic debt rose to Rs34.3tr by end-January, 3.4pc higher than it was a month ago and around 25pc higher than the year-ago figure. External debt stood at Rs20.69tr, recording a jump of 15.7pc in a month and 38pc in a year. The cash-starved government, which has been struggling to generate revenues, is heavily dependent on borrowing. The SBP’s data shows that during the first seven months (July to January) of the current fiscal year, the central government domestic debt rose by Rs3.218tr, an increase of 10.4pc. The government’s borrowings through long-term, high-cost Pakistan Investment Bonds (PIBs) reached Rs20.9tr by the end of January from Rs15.59tr a year ago, recording an increase of 34pc.