Government Cuts the FY 2024-25 Public Debt Repayment Target by 21%

by ahblog · June 20, 2024

Islamabad: Government cuts the fiscal year 2024-25 public debt repayment target by 21%.The government aims to raise Rs. 12.51 trillion through T-bills during FY25. No Sukuk bonds will be launched next fiscal year, while prize bond repayments are projected at Rs. 8.99 billion.

The repayment target for permanent domestic debt is Rs. 6.53 trillion next fiscal year. This includes;

Rs. 5.18 trillion in Pakistan Investment Bonds
Rs. 203.63 billion for non-banking PIBs.

Also, Ijara Sukuk (Islamic bonds) repayments are projected to rise to Rs. 752.53 billion from Rs. 274.69 billion in FY24.

No repayments are required for the 3-year Pakistan Banao Certificates as they matured in the previous fiscal year. However, Rs. 2.88 billion will be paid back for the 5-year certificates. Repayments for foreign exchange bearer certificates, foreign currency bearer certificates, US dollar bearer certificates, and Special US dollar bonds have slightly risen.

The government has reduced the repayment target for National Saving Schemes (NSS) to Rs. 1.6 trillion and provident fund disbursements to Rs. 77.88 billion for FY25. There have been big cuts in Defence Savings Certificates, Special Saving Certificates (registered), Special Saving Accounts, Regular Income Certificates, Pensionary Benefits, and Behbood Savings Certificates.

The federal government plans to spend Rs. 135.71 billion through various deposits and funds for state departments and employees, including Rs. 2.15 billion for the federal employees’ benevolent fund and group insurance fund and Rs. 9.89 billion for defense ministry employee benefits.

The Pak PWD spending target is Rs. 55.04 billion, with Rs. 25 billion earmarked for the Workers Welfare Fund. Telecom companies have allocated Rs. 10.96 billion for the Universal Service Fund (USF).

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