The government’s debt decreased by Rs456 billion in October.

In October, Pakistan’s debt decreased by Rs 456 billion, or one percent, on a month-on-month basis, resulting in a total of Rs 69.1 trillion.

The State Bank of Pakistan (SBP) reports that, despite a monthly drop, the federal government’s total debt stock increased by 11 percent year-on-year (YoY) by the end of October.

Furthermore, the debt increased by Rs 200 billion in the initial four months of the current fiscal year, totaling Rs 68.914 trillion as of June 30, 2024.

The entire reduction in debt is ascribed to decreases in both domestic and external debt, prompted by the government’s lowered financial needs due to unprecedented earnings from the SBP and efficient spending management.

The repayment of loans, coupled with a stable Pakistani rupee, further facilitated the reduction in overall debt stock in October.

By the end of October, domestic debt diminished to Rs47.23 trillion, reflecting a percentage decrease from the prior month, despite a 17 percent year-over-year increase.

As of the end of June, domestic debt was documented at Rs 47.16 trillion.

In October, Pakistan’s central government’s external debt decreased to Rs 21.88 trillion, reflecting a percentage fall relative to the prior year.

This debt also had a year-over-year percentage decline in October, with foreign debt recorded at Rs 21.754 trillion as of June 2024.

The State Bank of Pakistan (SBP) highlighted during the analysts’ briefing after last month’s monetary policy meeting that interest expenditures are expected to be considerably lower than previously predicted.