KARACHI - Public Sector Enterprises (PESs) domestic debts and liabilities rose by Rs39 billion to Rs552.3 billion by the end of the second quarter (October-December) of current financial year 2010-11 against Rs513.3 billion during the first quarter (July-September) of the same fiscal year. The outstanding stock of PSEs showed a 2.2 per cent year-on-year increase. It had also soared 3.5 per cent of GDP during Oct-Dec FY11. The PSEs debt includes loans from banks while liabilities of such enterprises reflect borrowings from banks for commodity finance operations. According to data on Countrys Debt and Liabilities for Q2-FY11 released by the State Bank of Pakistan, PSEs debt stood at Rs390.7 billion compared with Rs359.1 billion, depicting 2.0 per cent increase in growth over the last quarter with 2.4 per cent of GDP. In the second quarter, the stock of total liabilities, however, mounted to Rs161.6 billion from Rs154.2 billion during the first quarter FY11. A break-up of the Public Sector Enterprises debt and liabilities indicated that out of the total Rs390.7 billion PSEs debt, only Rs335.4 billion had reported by other public sector corporations during the period under review. The domestic debt of Pakistan International Airlines Corporation (PIA) and Water and Power Development Authority (WAPDA) rose to Rs24.6 billion and Rs16.6 billion. The debt of Pakistan Steel Mills Corporation stood at Rs14.0 billion debt. Similarly, Oil and Gas Development Corporations debt recorded at Rs0.1 billion during Q2-FY11. It must be mentioned here that Pakistans total debt and liabilities augmented to Rs11.054 trillion at the end of Q2-FY11. This was caused by heavy expansion in fiscal deficit and inadequate availability of external financing. Total public debt including the governments domestic and external debts, debt from IMF and external liabilities also swelled to Rs9.97 trillion. The governments domestic debt jumped to Rs5.294 trillion from Rs4.958 trillion in the first quarter of current fiscal year as the government heavily relied on the borrowing from the banking sources to finance its growing fiscal deficit during the period under review.