KARACHI: The government has planned to raise its debt worth of Rs5.87 trillion through issuing treasury bills to banks.
Over the next three months, the government has planned to help finance and national debt through issuing T-bills, Treasury bills to banks of net value Rs.720 billion which will also be added to the portfolio of public debt from the month of October to December 2021, as per sources.
However, the total debt of central government has also increased by 8 percent from 11.5 to 39.5 trillion, the planning of T-bills will increase the burden of debt on nation.
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While, on the other side the due to rupee value depreciation an amount of 1.8 million has been added to the foreign debt component.
Meanwhile, Higher the debts higher the tax revenue which will result into a reduction of developmental funds.
Although, the fresh borrowing of government suggests that of Rs5.05 trillion by issuing three to 12-month T-bills against maturing papers of Rs5.1 trillion from October to December 2021 is a short-term debt with long term bills.
Pakistan’s inflation rises to 3 months high and during the 8 months the public debt has increased over 8 percent, though the government’s different projects are under their developing stages it has set the economic growth target at 4.8% for the current fiscal year.
