KARACHI: The government’s debt and liabilities increased by 5.9 per cent in the first five months of the current fiscal year (5MFY22) and 14.4pc during the last 12 months (Nov 2020-Nov 2021), data issued by the State Bank of Pakistan (SBP) on Wednesday showed.

The SBP data showed that the government’s debt and liabilities increased to Rs40.973 trillion in November from Rs38.699tr at the end of June 2021 — an increase of Rs2.274tr or 5.87pc.

The debt also noted an increase of Rs694 billion in Nov 2021 compared to Oct 2021. The one-month increase was much higher than the average monthly increase of Rs454bn noted during FY22.

The debts and liabilities of the government increased to Rs40.973tr in Nov 2021 against Rs35.824tr in Nov 2020; an increase of Rs5.149tr or 14.4pc in 12 months.

Domestic debts and liabilities also saw an increase of about 2pc during 5MFY22. The debts and liabilities were Rs27.461tr in Nov 2021 against Rs26.958tr at the end of June 2021; an increase of Rs503bn or 1.86 per cent.

However, domestic debts and liabilities increased by 11.4pc or Rs2.818tr in Nov 2021 from Rs24.643tr in Nov 2020.

The debts and liabilities went up to Rs321bn in Nov 2021 from Rs27.140tr in Oct 2021.

The government is trying to follow the conditions under the agreement with the International Monetary Fund to keep the fiscal deficit within the range. Increasing tax collections have so far supported the government to keep the spending within the range. The government is willing to see the fiscal deficit for FY22 in the range of 6pc to 7pc of GDP.

Published in Dawn, January 6th, 2022