ISLAMABAD (News Desk): The finance ministry in its debt policy statement FY2019-20 has conceded that Pakistan’s public debt and liabilities have increased by Rs11,610 billion or about 39 percent in 15 months. In a report, the finance ministry noted that the total debt and liabilities that stood at Rs29,879 billion as of July 1, 2018, and crossed Rs41,489 billion by September 30, 2019. It also observed that the total debt and liabilities increased by 86.3pc of GDP at the end of FY18 to 94.3pc of GDP at the end of September 2019. It said the government’s domestic debt increased by Rs6,234 billion or 38pc in the 15 months. It said the government domestic debt that stood at Rs16,416 billion at end-June 2018 increased to Rs20,730 billion by end-June 2019 and reached Rs22,650 billion at end-September 2019. “The federal fiscal deficit (excluding grants) was recorded at Rs3,635 billion or 9.4pc of GDP during FY 2018-19, thus, remaining higher than the threshold of four percent,” said the debt policy statement. For the same period, it further noted that the government domestic debt that stood at Rs16,416 billion at end-June 2018 increased to Rs20,730 billion by end-June 2019 and reached Rs22,650 billion at end-September 2019. Government’s external debt during the 15-month period also increased by 36pc or Rs2,802 billion to Rs10,598 billion from Rs7,796 billion. External liabilities on the other hand increased by 160pc to Rs1,600 billion by September, 30, 2019 from Rs622 billion at June, 30, 2018. “However, total public debt to GDP ratio reached 72.1pc while total debt of the government to GDP ratio was 66.5pc. Total public debt and total debt of the government as percentage of GDP stood at 84.8pc and 76.6pc, respectively at end June 2019, thus, increasing further during the FY 2018-19,” the finance ministry conceded. “EDL was recorded at $106.3 billion by end June 2019, registering an increase of $11.1 billion compared to an increase of $11.8 billion recorded a year earlier. One half of the increase in EDL was due to rise in SBP liabilities in the form of deposits placed by bilateral partners (Saudi Arabia, the UAE, Qatar), and that these deposits only provide balance of payments support, add to foreign currency reserves and do not come as an extra resource in the budget”. 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 EDL part that falls under government domain is the debt which is serviced out of consolidated fund and owed to International Monetary Fund (IMF) whereas remaining includes liabilities of central bank, debt of public sector entities, private sector and banks. The pace of debt accumulation accelerated further in FY19 (Figure 5.1). In absolute terms, Pakistan’s total debt and liabilities (TDL) increased by Rs 10.3 trillion, which was more than twice the accumulation in FY18. Despite high deficit in FY19, its contribution to the overall debt accumulation was limited to only a third; the rest was attributed to: (i) an upward revaluation of existing stock of external debt following the depreciation of the Pak rupee; (ii) foreign exchange inflows from Saudi Arabia, UAE and Qatar, for balance of payments support; and (iii) government borrowing over and above the budgetary requirements that remained in the deposits with the banking system.