Pakistan News And Discussion-9

[Naresh]

<b>Domestic debt up by Rs 50 billion</b> <!--emo&:flush--><img src='style_emoticons/<#EMO_DIR#>/Flush.gif' border='0' style='vertical-align:middle' alt='Flush.gif' /><!--endemo-->

LAHORE - Like foreign debt the domestic debt has also expanded by 50 billion rupees in first three months of the current financial year, The Nation learnt on Friday.

From July to September period of this fiscal the domestic debt has enlarged to 2.343 trillion rupees as against 2.293 trillion in June 2006. In percentage the growth on domestic debt amounts to 2.18 per cent in three months of this fiscal.

According to available details, the overall domestic debt has shown increase in first three months of this fiscal because of growth in the treasury bills and national saving instruments.

The unfunded debt, comprising different treasury bills has increased by 41.21 billion rupees while the floating debt, consisting of national saving schemes surged by 14.48 billion rupees from July-September 2006.

The permanent debt, however, depicted 5.58 billion rupees negative growth in this fiscal during the period under review. Permanent debt comprises various types of federal government bonds and market loans.
In foreign exchange the domestic debt amounts to 38.49 billion dollars when calculated at the dollar-rupee parity of 60:87 rupees, announced by the State Bank of Pakistan on Friday.

The total external debt, liabilities and domestic debt stand at 76.21 billion dollars by September 2006 _ 37.72 billion dollars foreign debt and liabilities and 38.49 billion dollars worth domestic debt.

From July to September 2006 the foreign debt has also increased by 480 million dollars, 1.28 per cent, as it stood at 37.24 billion dollars in June 2006. The foreign debt of the country has been showing increase since the last financial year. In 2005-06 the foreign debt and liabilities surged by 1.43 billion dollars and stood at 37.26 billion dollars, from 35.83 billion dollars in 2004-05. In 2003-04 the foreign debt skipped below 35.50 billion dollars mainly because of the pre-payment of 1.60 billion dollars worth expensive debt that was in addition to regular repayment of the foreign debt.

Increase in foreign lending in last one year in the wake of October 2005 devastating earthquake the foreign debt has moved ahead in 2005-06 and in first quarter of this fiscal, said the official sources.

They said the percentage of growth of the domestic and foreign debt has declined to bottom as against the traditional annual increase of 8-12 per cent in the past, before 2002-03.

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->