Government’s budgetary borrowing from SBP declines by Rs 2.17 trillion

February 25, 2019 (MLN): As of February 15, 2019, the government sector’s cumulative net borrowing in the eight months of FY19, reached a sum of Rs.716.38 billion while net borrowing for budgetary support in particular touched Rs.866.2 billion.

The amount borrowed this year is a massive jump from that borrowed last year which was Rs.258  billion on cumulative basis while, Rs 296 billion for budgetary support.

According to the data released by State Bank of Pakistan (SBP) on Monetary Aggregates, the government has borrowed Rs 1.8 trillion from SBP during the period of FY19, depicting a massive leap from last year’s budgetary borrowing which stood at Rs422.4 billion.

On the other hand, in comparison to last week, government’s borrowing from SBP depicted a decline, as in last week it recorded at Rs.3.97 trillion, down by Rs2.17 trillion.

After a T-Bill auction on Feb 13, the net retirement to Scheduled banks has decreased from Rs.3.062 trillion to Rs.949.219 billion during the year.

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