Domestic debts, liabilities up 26 percent in a year

Domestic debts, liabilities up 26 percent in a year

Staff Report

KARACHI: The government’s domestic debts and liabilities have seen a whopping yearly surge of Rs 1,648 billion or 26 percent to reach overall burden of Rs 7,879 billion by end of financial year 2011-12 as compared with Rs 6,231 billion in the previous financial year 2010-11, State Bank of Pakistan (SBP) data showed.
The government borrowed the colossal amount through its federal government bonds particularly Pakistan Investment Bonds (PIBs) and Ijara Sukuk whereas its debts expanded through Market Treasury Bills.
The debts under federal government bond increased to Rs 1,395 billion by June as against Rs 844.4 billion amount stood in the same month of yesteryear, showing an increase of 61 percent or Rs 515.2 billion in a year’s period. The debts accumulated under Pakistan Investment Bonds (PIBs) rose to Rs 974 billion by end of June as against Rs 618.5 billion recorded in the same months, up by 57.5 percent in a year.
Government’s Ijara Sukuk Bonds witnessed a surge of 70 percent from 2010-11 to 2011-12, reaching the level of Rs 3,383.5 billion after addition of $158.9 in the worth during the outgoing financial year.
Similarly, it borrowed an amount of Rs 56.3 billion in a year through prize bonds, which stood at Rs 333.4 billion by end of 2011-12.
As far as floating debts are concerned, it surged by 28 percent or Rs 907 billion up to June 2012. The overall amount of debts increased to Rs 34,143.1 billion from Rs 3,235 billion in a year.
The government accumulated debts more than Rs 565.8 billion through Market Treasury Bills, which were up 31 percent in a year to reach Rs 2,383 billion as of June 2012 from Rs 1,817 billion since the same month of previous year.
Analysts said that the massive debts expansion was recorded in a year by the government in order to meet its budgetary expenses.