Pakistan s public debt rise to over 8 pc in 11 months: Data pakistantelegraph.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from pakistantelegraph.com Daily Mail and Mail on Sunday newspapers.
July 6, 2021
KARACHI: Pakistanâs public debt rose by Rs2.89 trillion or 8.23 percent in 11 months of the fiscal year ended June 30, the central bank data showed on Monday, due to increased government borrowing to meet the spending requirements during the coronavirus pandemic, and higher interest payments.
The central governmentâs debt stood at Rs37.997 trillion at the end of May 2021. The debt amounted to Rs35.107 trillion in the period ended June 2020.
The debt increased by 10.17 percent year-on-year in May. It was Rs34.489 trillion in the period ended May 31, 2020.
Fiscal Responsibility and Debt Limitation (FRDL) Act 2005 defines âTotal Public Debtâ as debt owed by the government (including federal government and provincial governments) serviced out of consolidated fund and debts owed to the International Monetary Fund.
The government borrowed Rs2.88tr during 11MFY21, with most of the amount accumulated through the Pakistan Investment Bonds and market treasury bills. AFP/File
KARACHI: The government’s domestic debt and liabilities increased by 12 per cent to Rs26.755 trillion during the 11 months of the current fiscal year (11MFY21) compared to Rs23.876tr in June 2020.
The government borrowed Rs2.88tr during 11MFY21, with most of the amount accumulated through the Pakistan Investment Bonds and market treasury bills (T-bills). The PIBs attracted $263 million also as foreign investment during FY21. The government borrowed Rs1.437tr through the auction of PIBs in 11MFY21 which enhanced total amount to Rs14.323tr till May FY21. The amount of PIBs in June 2020 was Rs12.886tr.
Pakistan Stock Exchange CEO Farrukh H. Khan said liquidity in the secondary debt market was minimal at the moment. Photo courtesy Farrukh H. Khan Twitter
KARACHI: Pakistan Stock Exchange CEO Farrukh H. Khan has said that trading volume in the secondary debt market is likely to receive a boost in the last quarter of 2021, thanks to big commercial banks taking up the role of market-makers.
Speaking to
Dawn on the sidelines of a ceremony to mark the on-boarding of BankIslami as a market-maker on Monday, Mr Khan said liquidity in the secondary debt market was minimal at the moment.
“That’s why we are bringing more and more banks on-board as market-makers,” he said while referring to financial institutions with a mandate to buy and sell debt instruments to ensure liquidity at all times.
Foreigners invest in T-bills, PIBs
Play significant role in stabilising Pakistan’s forex reserves at over $16b
The foreigners invested a gross amount of $973.46 million in the sovereign debt securities and pulled out $912.13 million dur-ing FY21, according to the State Bank of Pakistan (SBP). PHOTO: FILE
KARACHI:
Foreigners turned net investors of rupee-denominated government debt securities like T-bills and Pakistan Investment Bonds (PIBs) in fiscal year 2020-21 and played a significant role in stabilising Pakistan’s foreign currency reserves at the present four-year high value of over $16 billion.
“The return of stability in rupee-dollar parity made the sovereign debt securities (PIBs and T-bills) attractive again for foreign investors,” said BMA Capital Executive Director Saad Hashemy while talking to The Express Tribune.