ISLAMABAD: The Senate was told Friday that public debt has increased from Rs6.1 trillion in June 2008 to Rs67.5 trillion in March 2024.
Finance Minister Muhammad Aurangzeb shared this data in writing in the House during the question hour. He explained that public debt stood at Rs6.1 trillion in June 2008 and went up to Rs67.5 trillion, showing an increase of Rs61.4 trillion.
He told the Senate it was due to a primary deficit of Rs10.2 trillion, interest expenses of Rs32.3 trillion, and other factors, including exchange rate/accounting adjustments, accounting for Rs18.9 trillion.
Finance Minister Muhammad Aurangzeb shared this data in writing during the house’s question hour. He explained that public debt, which stood at Rs6.1 trillion in June 2008, increased to Rs67.5 trillion, reflecting a rise of Rs61.4 trillion.
He noted that public debt consists of domestic debt, which was Rs3.3 trillion in June 2008 and rose to Rs43.4 trillion in March 2024, totaling an increase of Rs40.2 trillion.
Meanwhile, external debt, which was Rs2.9 trillion in June 2008, increased to Rs24.1 trillion, showing a rise of Rs21.2 trillion.
The minister explained that the increase in public debt over time is primarily due to (i) the fiscal deficit (primary deficit plus interest expenses) and (ii) exchange rate movements and accounting treatments. From June 2008 to March 2024, the net increase in public debt was Rs61.4 trillion.
Responding to another question, he clarified that it is incorrect to claim that borrowings in FY2023-24 have exceeded the combined total of the last two fiscal years. He said that the net increase in public debt was Rs9.4 trillion in 2021-22, Rs13.7 trillion in 2022-23, and Rs8.4 trillion in 2023-24.
He also denied claims that the government spent its entire tax revenue on debt servicing. He provided a comparison of federal tax revenues and interest expenses, noting that federal tax revenue remained higher than interest expenses.
The minister detailed the net increase in public debt, noting that FBR taxes were Rs6.1 trillion in 2021-22, while interest expenses stood at Rs3.2 trillion. In 2022-23, taxes were Rs7.2 trillion, with interest expenses of Rs5.7 trillion. In 2023-24, taxes amounted to Rs9.3 trillion, with interest expenses recorded at Rs8.3 trillion.
Answering another question, he said the government has introduced the issuance of Shariah-compliant instruments through the PSX to broaden the investor base beyond the banking sector. Rules have been amended so that individuals and investors, other than primary dealers/banks, can also participate in government securities auctions, reducing dependence on the banking sector.
The minister informed the house that total lending by commercial banks stood at Rs38,535.1 billion as of end-June 2024. Credit to the private sector was Rs8,776.4 billion as of end-June 2024, representing 22.8% of total lending by commercial banks. Credit to the private sector increased by Rs494.0 billion during FY24, registering 6.0% growth compared to 0.2% growth during the same period last year.
Credit to Public Sector Enterprises (PSEs) stood at Rs2,139.8 billion as of end-June 2024, 5.6% of total lending by commercial banks. It shows a retirement of Rs72.2 billion during FY24, a decline of 3.3% against a 29.6% increase during the comparable period last year.
Replying to a question, the minister said the Federal Board of Revenue has initiated a simplified tax regime known as the ‘Tajir Dost Scheme’ to facilitate retailers in registration and payment of advance tax. So far, more than 50,000 retailers have registered under this scheme.
He said that the FBR had recently issued SRO No. 1024 of 2024, introducing fixed monthly payments based on indicative income at identified localities for shopkeepers and retailers in 42 cities.
The minister also mentioned that the cell phones of more than 265,000 selected potential non-filers/stop-filers have been temporarily disabled through TELCOs, and to date, 103,337 SIMs have been restored after filing returns.
Moreover, he noted that 3,574,221 new taxpayers registered during FY2023-24, with 1,780,406 new returns filed—an increase of 55% and 69.8%, respectively, compared to the previous fiscal year.
Regarding the currency notes in circulation, he said that as of May 31 this year, the total number of notes of various denominations in circulation was 15,649 million pieces: Rs10 (5,662 million notes), Rs20 (716 million), Rs50 (1,798 million), Rs75 (166 million), Rs100 (1,486 million), Rs500 (1,639 million), Rs1,000 (3,192 million), and Rs5,000 (990 million).
During the session, senators expressed their appreciation for Arshad Nadeem, who won a gold medal in the Olympic Games, congratulating him on establishing a new world record.
Senator Masroor Ahsan stood up to congratulate the nation on winning the gold medal, praising Arshad Nadeem for bringing glory to the country.
Law Minister Azam Nazeer Tarar remarked that the athlete has undoubtedly made the country proud and is a national hero.
Senate Deputy Chairman Syedal Khan, who was presiding over the sitting, also praised Arshad Nadeem, announcing that he would be rewarded upon his return and that a dinner in his honor would be hosted. Senator Zeeshan Khanzada suggested that the Senate should pass a resolution in favour of Arshad Nadeem and promised to table the resolution. During the question session, the Senate was prorogued sine die after quorum was pointed out, and the required number of members was not present in the house.
