Domestic debt surges to unprecedented high
Pakistan’s domestic debt stocks for the current fiscal year have surpassed Rs 4 trillion for the first time in the history of the country. This is primarily due to the significant rise in fiscal deficit and sluggish FDI prompting domestic debt to reach a precipitous Rs 4.374 trillion. Last year, domestic debt stood at Rs 3.852 trillion.
Permanent debt registered a 12% increase comprising market loans, federal government bonds and income tax bonds.
Un-funded debt has registered an increase of Rs 125.8 billion or 10%, amounting to Rs 1.396 trillion for the first eight months of the current fiscal year as compared to Rs 1.27 trillion at the end of FY09.