Karachi September 6 2021: As per data released by State Bank of Pakistan, the central Government debt increased by PKR 2,720 billion to PKR 50,503 billion as of July 2022.
The main reason for increase in central Government debt is increase in external debt due to rupee devaluation as currency depreciated from an average of 204.37 in June 2022 to 239.71 in July 2022.
Pakistan made mark-up payment of PKR 3,182 billion during the fiscal year 2021-22 compared to 2,750 billion during the fiscal year 2020-21, which is nearly half of the FBR revenue of PKR 6,755 billion in fiscal year 2021-22.
Domestic debt increased by PKR 92 billion to PKR 31,036 billion in a month. The domestic debt is 61.3 percent of total debt.
External debt increased by PKR 2,628 billion to PKR 19,375 billion in a month. The proportion of external debt is increased to 38.4 percent in July 2022 from 35.0 percent in June 2022.
In one year, central Government Debt increased by PKR 10,633 billion from PKR 39,870 billion in July 2021, according to Central Bank data. During the same period external debt increased by PKR 6,331 billion while domestic debt increased by 4,301 billion.
As per the latest data released by the Ministry of Finance during last month, Pakistan’s Budget deficit reached PKR 5,260 Billion during the fiscal year 2021-22. It is the highest deficit that the country reported. The quantum of the deficit has increased by 55 percent compared to the fiscal year 2020-21. Pakistan’s Budget Deficit has reached 7.9 percent of GDP during the fiscal year 2021-22.
