ISLAMABAD: Pakistan’s debt witnessed a reduction of Rs 456 billion, or a percent on a month-on-month basis in October, bringing the total to Rs 69.1 trillion.
According to details by the State Bank of Pakistan (SBP), in contrast to this monthly decline, the federal government’s total debt stock saw an increase of 11 percent year-on-year (YoY) by the end of October.
Additionally, the debt rose by Rs200 billion during the first four months of the current fiscal year, with a total of Rs68.914 trillion recorded as of June 30, 2024.
The overall decrease in debt is attributed to reductions in both domestic and external debt, driven by the government’s diminished financing requirements amid record-high profits from the the SBP and effective expense management.
The repayment of loans, along with a stable Pakistani rupee, further contributed to the decline in total debt stock in October.
Also read: Pakistan’s foreign exchange reserves stand at US$ 15.96bn
At the end of October, domestic debt decreased to Rs47.23 trillion, or a percent decline from the previous month, although it rose by 17 percent YoY.
By the end of June, domestic debt was recorded at Rs47.16 trillion.
Similarly, Pakistan’s central government’s external debt fell to Rs21.88 trillion in October, marking a percent decline compared with the previous year.
This debt also experienced a percent decrease YoY in October, with foreign debt recorded at Rs21.754 trillion as of June 2024.
The State Bank of Pakistan (SBP) indicated during the analysts’ briefing following last month’s monetary policy meeting that interest expenses are anticipated to be significantly lower than previously expected.
