ISLAMABAD: The total value of public debt at present (Feb 25) is Rs75.3 trillion including Rs51 trillion domestic and Rs24.3 trillion external debt.
In a written reply to a question, Minister for Finance and Revenue Senator Muhammad Aurangzeb Wednesday told the National Assembly that it is the “Total Public Debt” defined as debt owed by the government (including federal government and provincial governments) serviced out of consolidated funds and debts owed to the International Monetary Fund (IMF).
He said that the government’s borrowing needs are mostly determined bythe amount of the fiscal deficit, as public debt is primarily obtained for financing of the fiscal deficit. He said that historically, the major factor contributing towards the fiscal deficit has been the interest expense. He said that due to the government’s fiscal consolidation and economic stabilisation efforts, it is expected that interest expense for the whole FY-25 should be well within the budgeted amount, which is expected to keep the deficit on the lower side. While the need for obtaining loans will be there, the growth in public debt will be kept under manageable levels, he said.
The finance minister said that the total value of public debt till January-2025 stood at Rs74.4 trillion including Rs50.2 trillion domestic and Rs24.2 trillion external debt.
While giving details about central government domestic debt till February-2025, he said that long term debt is Rs42.72 trillion, Rs39.43 trillion is permanent debt, Rs38.554 trillion federal government bonds, Rs5.93 trillion is government of Pakistan Ijara Sukuk, Rs32.558 trillion is Pakistan Investment Bonds, Rs399.4 billion Price Bonds, Rs2.914 trillion unfunded debt and Rs2.835 trillion is Saving Schemes (Net of Prize Bonds) etc.
About the short term, the minister said that there is Rs8.23 trillion floating debt including Rs8.136 trillion Market Treasury Bills and Rs94.4 billion MTBs for Replenishment of Cash etc.
About the central government external debt till February-2025, the finance minister said that there is Rs21.73 trillion long term debt, Rs288.6 billion short term debt and Rs2.3152 trillion is International Monitory Fund (IMF), etc.
Another written reply to a question, Minister for Finance Aurangzeb told the house that a total subsidies amounting to Rs237.310 billion have been provided to various sectors/entities by the federal government during first six months of CFY 2024-25. He said that the government provided Rs218.313 billion to the power sector, Rs2.4 billion to PASSCO, Rs3.81 billion to wheat subsidy (GB), Rs6.9 billion to refinance facility, and Rs5.79 billion to housing financing.
About the breakup of grants and loans provided to different government entities during first six months of financial year 2024-25, the minister said that the government provided a total of Rs644.17 billion grants including Rs232.25 billion to Benazir Income Support Programme (BISP), Rs22.59 billion to Higher Education Commission (HEC), Rs26.66 billion to Railways, Rs 3.14 billion to Pakistan Baitul Maal and Rs359.53 billion to others.
About the loans, he said that the government provided Rs48.32 billion loan to National Highways Authority (NHA), Rs7.48 billion to National Transmission &Despatch Company (NTDC), Rs5.5 billion GENCO and Rs0.21 billion to others.
Responding to a supplementary question of the members, Parliamentary Secretary for Commerce Zulfiqar Ali Bhatti told the House that bilateral trade volume between Pakistan and Saudi Arabia during the last fiscal year was $5.7 billion.
He said that his ministry has successfully secured duty-free concession on more than 94 percent of Pakistani products in the UK after Brexit.
Later, responding to a calling attention notice, Parliamentary Secretary for Finance and Revenue Saad Waseem Sheikh informed the House that the federal government has so far provided over Rs600 billion to the Khyber Pakhtunkhwa government for the development of the erstwhile Fata.
He said this amount has been provided to provincial authorities other than Khyber Pakhtunkhwa share in the NFC Award.
Copyright Business Recorder, 2025
