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In 5MFY22, the government’s debt increased by 6%

KARACHI: According to figures released by the State Bank of Pakistan (SBP) on Wednesday, the government’s debt and liabilities grew by 5.9% in the first five months of the current fiscal year (5MFY22) and 14.4% in the previous year (Nov 2020-Nov 2021).

The government’s debt and obligations grew to Rs40.973 trillion in November from Rs38.699 trillion at the end of June 2021, according to SBP statistics, a rise of Rs2.274 trillion or 5.87 percent.

Also read: The SBP’s reserves fell by US$ 415 million, owing to the repayment of external debt

In November 2021, the debt increased by Rs694 billion over October 2021. The one-month rise was significantly larger than the FY22 average monthly increase of Rs454 billion.

The debts and liabilities of the government increased to Rs40.973tr in Nov 2021 against Rs35.824tr in Nov 2020; an increase of Rs5.149tr or 14.4pc in 12 months.

Domestic debts and liabilities also saw an increase of about 2pc during 5MFY22. The debts and liabilities were Rs27.461tr in Nov 2021 against Rs26.958tr at the end of June 2021; an increase of Rs503bn or 1.86 per cent.

However, domestic debts and liabilities increased by 11.4pc or Rs2.818tr in Nov 2021 from Rs24.643tr in Nov 2020.

The debts and liabilities went up to Rs321bn in Nov 2021 from Rs27.140tr in Oct 2021.

Also read: According to Fawad, the government returned a $12.27 billion debt this year

The government is trying to follow the conditions under the agreement with the International Monetary Fund to keep the fiscal deficit within the range. Increasing tax collections have so far supported the government to keep the spending within the range. The government is willing to see the fiscal deficit for FY22 in the range of 6pc to 7pc of GDP.

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