KARACHI: The federal government’s domestic debt surged by Rs2.5 trillion in the first half of the current fiscal year despite significant support from the State Bank of Pakistan (SBP) in substantial profits.

The data issued by the SBP on Friday showed that the government’s domestic debt rose to Rs50.193tr at the end of Dec 2024 from Rs47.724tr on June 30, 2024.

What is more concerning is that the debt increased despite Rs2.7tr provided by the State Bank as profit, and the government started turning down bids for treasury bills in subsequent auctions as the inflow was........

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