ISLAMABAD
The country’s outstanding debt surged by 4.98 percent in June 2021 on a month-on-month basis as it increased to Rs25.31 trillion in June from Rs24.11 trillion in May, showing an increase of around Rs1.2 trillion.
On a year-on-year basis, outstanding debt increased by 10.14 percent as it was Rs22.98 trillion in June 2020. The country’s total credit accumulation during the 12 month period (July-June 2020-21) widened by Rs2.33 trillion as the total outstanding debt at the beginning of ongoing fiscal year June 30, 2020, stood at Rs22.98 trillion. This means that Pakistan’s outstanding debts broadened by 10.14 percent this fiscal year.
The total outstanding credit is branched into the amount accumulated by the government sector and that accumulated by the non-government sector. Out of the total outstanding loan, credit given to the government sector accounted for Rs16.63 trillion while credit to non-government sectors accounted for Rs8.69 trillion. The State Bank of Pakistan’s net credit to the government sector amounted to Rs5.4 trillion which included investments in government securities and government deposits, and other direct loans. During these 12 months, the central bank has retired a sum of Rs1.14 trillion or 17.47 percent.
Meanwhile, the second largest source of financing for the sector, the Scheduled Bank’s net credit added up to Rs11.22 trillion which is Rs2.85 trillion higher than the outstanding credit at the beginning of the fiscal year thus indicating that the sector accumulated additional loans during the period.
The State Bank’s claim to outstanding credit of this particular sector is comparatively negligible (only Rs29.81 billion), while on the other side, scheduled banks have a claim to up to Rs8.66 trillion as of the end of this month.
At the end of May 2021, the outstanding amount owed to these banks was Rs8.49 trillion indicating that Rs163.25 billion were additionally borrowed during the month whereas during the ongoing fiscal year, Rs622.67 billion were further accumulated.
