ISLAMABAD: The country’s total public debt increased to Rs 18,467.3 billion by end of December 2015 as compared with the total public debt of Rs 14,318.4 billion in 2013.
Out of total public debt of Rs 18,467.3 billion, the external public debt is Rs 5,589.2 billion, while domestic public debt is Rs 12,878.1 billion. There is a net increase of Rs 4,148.9 billion in total public debt, inclusive of $5.23 billion of external debt.
This was revealed during a meeting of the Monetary and Fiscal Policies Coordination Board, which was held under the chairmanship of Finance Minister Ishaq Dar, to discuss the economic situation of the country. The meeting was attended by Commerce Minister Khurram Dastgir, Finance Secretary Waqar Masood, State Bank of Pakistan Governor Ashraf Wathra and former SBP Governor Dr Ishrat Hussain.
The finance minister stated that due to better policies of the government, 4.24 percent GDP growth was achieved in 2015, which is the highest growth during last 7 years. “We have targeted our growth at 5.5 percent for 2016. Early indicators of the commodity producing sector suggest that the economic growth is picking up modestly.”
The credit to the private sector has witnessed expansion of more than 100% during July to March 4, 2015-16, over the last year. With this trend in expansion of credit to the private sector, it is very likely that the private sector investment will record its first uptick after several years. Similarly, public sector development spending also increased to Rs.700 billion during FY 2016 which will support public sector investment. All monetary aggregates are moving in a comfortable zone.
Moreover, refinancing risk of the domestic debt portfolio was reduced through lengthening of the maturity profile at the end of June 2015. Percentage of domestic debt maturing in one year was reduced to 47 percent compared with 64 percent at the end of June 2013. Exposure to interest rate risk was also reduced as the percentage of debt re-fixing in one year decreased to 40 percent at the end of June 2015 compared to 52 percent at the end of June 2013 and share of external loans maturing within one year is equal to around 28 percent of official liquid reserves at the end of June 2015 as compared to 69 percent at the end of June 2013, indicating improvement in foreign exchange stability and repayment capacity.
