KARACHI:
The country’s domestic debt has risen by Rs 813 billion (20 percent) over the last year, indicating massive borrowings by the government to control the widening fiscal deficit.
The domestic debt stood at Rs 4.05 trillion in August 2009, but expanded to Rs 4.863 trillion by August 2010.
In the first two months of this fiscal year, the domestic debt expanded by Rs 211 billion or 4.53 percent, mounting to Rs 4.863 trillion, the highest-ever mark in the country’s history.
The State Bank of Pakistan said domestic debt was Rs 4.652 trillion by the end of financial year 2009-10, but climbed to Rs 4.863 trillion within the first two months of 2010-11.
The floating debt, consisting of market treasury bills (MTBs) and MTBs for replenishment, showed an abnormal growth of Rs 194 billion, amounting to Rs 2.593 trillion by August 2010.
