KARACHI – An increase of 11.23 percent has been recorded in Pakistan’s public debt in August as it has increased to Rs21.770 trillion from Rs19.572 trillion in August 2016.

The increase occurred due to domestic borrowing of the government from banks to meet its financial requirements. The external debt of the country also surged during the said period.

At the end of August, domestic debt increased to Rs15.707 trillion from Rs14.147 trillion in the same period last year, the central bank said.

Experts saw the increase in expenditure, budget deficit, low revenue collection and static foreign investment as major factors behind the surge.

A surge has been observed in long-term and short-term debts, a composition of domestic debt, while floating debt also increased during the said period, The New International reported.

The short-term debt, including market treasury bills, witnessed an increased to Rs7.914 trillion in August from Rs6.465 trillion in the previous year.

Similarly, long-term debt registered increase to Rs7.792 trillion from Rs7.681 trillion.

The government borrowed Rs3.850 trillion from commercial banks through treasury bills as of August 31, 2017 as compared to Rs3.323 trillion during the same period of last year.

The government intends to get more debt of Rs4.375 trillion through treasury bills and long-term papers during November to January 2018 to meet budget deficit.