Pakistans debt reaches Rs 12,024 billion
Aftab Maken
Saturday, June 02, 2012
From Print Edition
Islamabad
Pakistans total debt, including domestic and foreign, has reached Rs12,024 billion against last years Rs10,706 billion, showing nearly a 100 percent rise
since the PPP government took over in 2008, reveals the Economic Survey released here on Thursday.
Of this total public debt, the survey said the domestic debt was Rs7,206.9 billion end-March 2012, representing an increase of Rs1,190.5 billion growth of 19.8 percent in the first nine months of the current fiscal year. The Survey also attributed this increase in domestic debt to net issuance of market debt, namely, Treasury bills (Rs576.4 billion) and PIBs (Rs307.5 billion) and also deficit financing through internal sources owing to lower external receipts have been the major cause.
The government has also increasingly focused on the domestic part over the last few years owing to non-availability of sufficient external financing i.e. domestic borrowings inched up in share from 46.6 percent in fiscal year 1990 to 59.9 percent at end March, 2012.
However, the Survey also claimed that Pakistans public debt position declined slightly in the current fiscal year, mainly due to higher interest payments, huge subsidies, specially food and energy, growing security spending needs, narrow tax base and rising international commodity prices have resulted in large twin account (i.e. fiscal and current account) deficits.
At the end of March 2012, the IMF debt aggregated to up to $8.1 billion and payment amounting to $793 million has been made in the third and fourth quarters of fiscal year 2012. Similarly, the Government of Pakistan has issued new guarantees, aggregating to Rs146 billion; thus, total outstanding stock of government guarantees as on March 2012 stood at Rs487 billion.
Public and publicly guaranteed debt is dominated by loans from bilateral and multilateral donors. Multilateral debt, which is the largest component of countrys EDL, witnessed a decrease of $730 million during the period under review.
The share of private non-guaranteed debt in total EDL stood at 06 percent end-March 2012, and the stock of private non-guaranteed debt decreased by $147 million from $3.48 billion in June 2011 to $3.34 billion by end-March 2012.
The commitments of foreign economic assistance were $4,580 million during 2010-11 while during July-March 2012, total commitments amounted to $1,967 million. About 76 percent of total commitments during July-March 2012 were in the shape of project aid while the remaining comprised non-project aid. Out of total non-project aid, share of BOP/budgetary support was 78 percent.
During July-March 2010-11, disbursements of $1,660 million were for different purposes like Project Aid ($1,113 million), programme loans/budgetary support ($99 million) and relief ($448 million). Project aid accounted for 67 percent of the total disbursements.
During fiscal year 2011, external debt servicing summed to $4,799 million that is 14.3 percent lower than that of the previous year. A segregation of this aggregate number shows a payment of $2,348 million in respect of maturing EDL stock where interest payments were $ 963 million. $1,488 million was rolled-over.
Pakistan
Aftab Maken
Saturday, June 02, 2012
From Print Edition
Islamabad
Pakistans total debt, including domestic and foreign, has reached Rs12,024 billion against last years Rs10,706 billion, showing nearly a 100 percent rise
since the PPP government took over in 2008, reveals the Economic Survey released here on Thursday.Of this total public debt, the survey said the domestic debt was Rs7,206.9 billion end-March 2012, representing an increase of Rs1,190.5 billion growth of 19.8 percent in the first nine months of the current fiscal year. The Survey also attributed this increase in domestic debt to net issuance of market debt, namely, Treasury bills (Rs576.4 billion) and PIBs (Rs307.5 billion) and also deficit financing through internal sources owing to lower external receipts have been the major cause.
The government has also increasingly focused on the domestic part over the last few years owing to non-availability of sufficient external financing i.e. domestic borrowings inched up in share from 46.6 percent in fiscal year 1990 to 59.9 percent at end March, 2012.
However, the Survey also claimed that Pakistans public debt position declined slightly in the current fiscal year, mainly due to higher interest payments, huge subsidies, specially food and energy, growing security spending needs, narrow tax base and rising international commodity prices have resulted in large twin account (i.e. fiscal and current account) deficits.
At the end of March 2012, the IMF debt aggregated to up to $8.1 billion and payment amounting to $793 million has been made in the third and fourth quarters of fiscal year 2012. Similarly, the Government of Pakistan has issued new guarantees, aggregating to Rs146 billion; thus, total outstanding stock of government guarantees as on March 2012 stood at Rs487 billion.
Public and publicly guaranteed debt is dominated by loans from bilateral and multilateral donors. Multilateral debt, which is the largest component of countrys EDL, witnessed a decrease of $730 million during the period under review.
The share of private non-guaranteed debt in total EDL stood at 06 percent end-March 2012, and the stock of private non-guaranteed debt decreased by $147 million from $3.48 billion in June 2011 to $3.34 billion by end-March 2012.
The commitments of foreign economic assistance were $4,580 million during 2010-11 while during July-March 2012, total commitments amounted to $1,967 million. About 76 percent of total commitments during July-March 2012 were in the shape of project aid while the remaining comprised non-project aid. Out of total non-project aid, share of BOP/budgetary support was 78 percent.
During July-March 2010-11, disbursements of $1,660 million were for different purposes like Project Aid ($1,113 million), programme loans/budgetary support ($99 million) and relief ($448 million). Project aid accounted for 67 percent of the total disbursements.
During fiscal year 2011, external debt servicing summed to $4,799 million that is 14.3 percent lower than that of the previous year. A segregation of this aggregate number shows a payment of $2,348 million in respect of maturing EDL stock where interest payments were $ 963 million. $1,488 million was rolled-over.
Pakistan
