Government borrowing from SBP reaches Rs 1.493 trillion

The government borrowing from the State Bank of Pakistan and other banks in the preceding year registered an increase of almost 58 percent which denoted that spending has been accelerated and the revenue collection was not par excellence.

The data posted on the website of the State Bank of Pakistan revealed that the government borrowing during July 1 2016 to June 23, 2017 amounted to Rs 1.493 trillion as compared to Rs 947 billion of the same periods last year. The government borrowing for budgetary support during the same period was Rs 1.440 trillion, which showed that spending has been accelerated and would have the inflationary impact on the country's economy.

Another glaring figure revealed from the data the provinces too was on the borrowing drive during 2016-17 period against preceding year where they retired healthy amount to the central bank.

Punjab government was the net borrower of Rs 96 billion, Sindh government Rs 92 billion and KPK around Rs 42 billion while in the respective year they retired amount of Rs 50 billion, Rs 86 billion and Rs 42 billion respectively.

The cash starved Baluchistan and neglected province again was the net borrower of Rs 7 billion in the preceding year it was Rs 7.28 billion.

“According to an analyst huge borrowing showed that government despite trumpeting that they have made huge gains in economy dependence on central bank showed that national exchequer has been receiving less revenue as par their targets, foreign investment has been lesser than expectation and has to borrow from external sources”, he said.