Islamabad, April 29:

The total outstanding domestic debt of Pakistan rose from Rs 2,133 billion Pakistani Currency (PC) at the end of June 2005 to Rs 2,264 billion PC at the end of January 2006 — an increase of 6.14 per cent — mostly due to a rise in the stocks of floating and un-funded debt.

However, the permanent debt declined during the period under review, said the State Bank of Pakistan (SPB). During the first seven months of the fiscal (July-January), the floating debt increased by Rs 145.282 billion PC and un-funded debt by Rs 2.074 billion PC, whereas permanent debt declined by Rs 16.33 billion PC.

The permanent domestic debt comprising medium and long-term market loans, federal government loans, special government loans, federal instruments and prize bonds, stands at Rs 484.54 billion PC, which was Rs. 500.87 billion PC at the end of 2004-05. The floating domestic debt, mainly comprising short-term debt instruments and market treasury bills, maintaining a cli-mbing trend stood at Rs 778.16 billion PC at the end of June 2005. In the following seven months it went up to Rs 923.45 billion PC.

The un-funded domestic debt comprising the National Saving Schemes stands at Rs 856.12 billion PC.

Defence hike

ISLAMABAD: Pakistan’s federal budget to be presented to the National Assembly on June 5 would see a major hike in the defence budget, say officials. Finance officials are busy completing work on the federal budget 2006-07, which would be presented by minister of state for finance Omer Ayub Khan. The cabinet will approve the budget proposals before the National Assembly session. Last year the budget with a total outlay of Rs 1,098 billion PC was presented on June 6. — HNS