PkR 484 billion spent on domestic debt servicing during 8M FY12 – Alfalah Securities Limited

Karachi: Domestic debt servicing has surged to PkR 484 billion mark during 8M (Jul-Feb) FY12 as compared to PkR 394 billion last year.

According to Alfalah Securities Limited, the higher borrowing from domestic banking system for budgetary support has raised the burden of debt servicing on the federal government. The debt servicing has registered a growth of 23% during the 8M FY12 mainly due to higher borrowing accompanied by higher interest rates. Alfalah Securities Limited believes the borrowing costs are likely to surge further due to continued budgetary borrowing to finance the fiscal deficit.