4. “Total outstanding borrowings of central
Government comprising of internal (owing to
national creditors) and external (owing to foreign
creditors) debt incurred in financing its
expenditure”
5. Short term borrowings such as Treasury Bills
Borrowings from State Bank of Pakistan
National savings Certificate
Savings bonds
Premium Bonds
Securities Repayable in foreign exchange
6. Govt. need a lot of money to provide for law and
order, health services, upkeep and maintenance of the
towns around you, transport (Including roads),
education, social services and the vast mechanism
needed to keep the life of that country running.
7. They raise most of the necessary funds from all of us,
through taxes. The problem is to get elected they have
to make promises and to keep the people who elected
them happy (so they will vote them in again) they
sometimes promise more than they can afford to
deliver.
8. They decide that they need to spend huge amounts of
money to keep things running and prevent whole
sections of their finely crafted way of life from failing.
This would cause great hardship and, by the way, make
sure they never got elected again. So, to avoid all these
problems they need Debt.
9. Domestic Debt:
Pakistan’s domestic debt comprises permanent debt
(medium and long-term), floating debt (short-term)
and unfunded debt (made up of the various
instruments available under the National Savings
Schemes).
10. Pakistan’s External Debt and Liabilities (EDL) include
all foreign currency debt contracted by the public and
private sector, as well as foreign exchange liabilities of
the State Bank of Pakistan.
the strong concessionality element (low cost )
11. The responsibility for debt management in
Pakistan lies mainly with the Ministry of Finance.
Its subsections, namely the Economic Affairs
Division (EAD) and Finance Division (FD),
maintain relevant information on almost all
aspects of debt management.
12. The EAD monitors aid inflows, debt servicing,
and the allocation of funds received in aid, grants,
and borrowings.
13. The FD is responsible for policymaking with
regard to debt
The State Bank of Pakistan (SBP) also maintains
debt-related data, while the Central Directorate
of National Savings records all information on
domestic public debt raised by the government’s
National Savings Schemes (NSS).
14. A higher growth of public debt relative to GDP
An increase in real growth of public debt as
compared to real growth of revenues
A slow pace of revenue generation
A constant erosion of domestic currency
15. Poor coordination and information flow between debt
management agencies
Outdated data management systems and limited computer
access across different departments
Long term planning and project feasibility are the least
priority
personal inclinations, political motives and vested interests.
Lack of adoption of strict guidelines for effective debt
management
