Public debt stock rises to Rs73.7tr

#Public #debt #stock #rises #Rs73.7tr

KARACHI: Pakistan’s total loan reserves increased by 7.0 %, or Rs 4.77 trillion in the first nine months of the financial year 2025, which is mainly due to taking more domestic loan to meet the budget requirements.

At the end of March, the country’s central government’s debt increased to Rs 73.688 trillion, up from Rs 68.914 trillion by June, the State Bank of Pakistan’s data on Monday. The loan increased by 12.7 percent of the year (YOY) and a 0.9 percent month (mother) in March.

In recent years, the level of public debt has been increasing and the increasing cost of this loan service puts pressure on public income. However, the SBP has reduced its benchmark interest rate by 1,100 twenty points (BPS) since June, which reflects the ease of inflation and improving the financial situation.

Saad Haneef, the head of the research in Ismail Iqbal Securities, said the increase in public debt is mainly due to the government’s financial needs and dependence on borrowing. This increase was primarily run by domestic loans, which increased by 18.6 % to Rs 51.5 trillion. Within it, the long -term debt increased by 25 %, especially permanent debt, which increased by 28 % Yoy.

Domestic debt increased by 9.24 % in the July 25 fiscal year of July. “On the contrary, short -term debt decreased by 4.5 percent of YOY, as the government actively carried its loan to the long -term devices to reduce the risk of rollover.”

He said that external debt remained widely stable during limited foreign arrivals. “Under domestic loans, a reduction in foreign currency loans also indicates payments, while changes in long maturity is a positive one for the stability of loans,” he added.

Foreign debt increased to Rs 22.2 trillion in March, an increase of 1.0 % over the previous year. This also increased by 0.7 percent a month (MOM) and increased by 2.0 percent over nine months. Pakistan’s financial performance has improved, which records a 2.4 % budget deficit for total domestic products, which is 2.97 trillion for the period of July 25, July 25. This is an improvement compared to the 3.7 % deficit recorded during the same period last year. While tax revenue increased, they still fell less than the goals set by the International Monetary Fund (IMF).

These figures related to Pakistan’s debt follow the ceasefire agreement between India and Pakistan, which has significantly eased regional tensions. The announcement came after the Phalgam attack in several weeks, in which the financial markets were upset.

On Friday, Pakistan unanimously received an important financial lifeline with the approval of the IMF’s $ 1 billion distribution as part of a $ 7 billion loan program last year. In addition, the IMF approved a new loan of $ 1.4 billion to Pakistan under its climate flexibility fund.

According to SBP data, the country’s total debt and liabilities increased to 89.834 trillion for the first nine months of fiscal year 25, which increased by Rs 81.45 trillion during the same period last year. Despite the decline in interest rates, interest payments on the total loan in domestic loans were Rs 6.89 trillion, with domestic loans serving more than Rs 5.86 trillion. This trend indicates a growing financial burden. Meanwhile, external debt service was higher for Rs 2.1 trillion, mainly due to payment to multilateral lenders and bilateral lenders.

In terms of the dollar, Pakistan’s outstanding total external debt and liabilities fell to $ 130.31 billion by March 31, 2025, compared to $ 131.04 billion at the end of June.