An increase of 44 per cent in the domestic debt during the previous fiscal year could strain the economy as interest payments rose at a rate of 14.5pc.
The State Bank of Pakistan (SBP) in its latest quarterly edition of Compendium July 2014 said the interest payments on domestic debt grew by 14.5pc during the first 11 months (July-May) of FY14. The final figure of the entire fiscal for interest payments has yet to come.
However, another report of the SBP showed the domestic debt rose by 44.2pc in FY14 reflecting the poor health of the economy. In the first three quarters (July-March) of FY14, the fiscal deficit was entirely met by the borrowing from the domestic sources, it said.
