April 8, 2019 (MLN): The Government of Pakistan’s net loan for ongoing fiscal year (FY19) has come down by Rs.157 billion during the week ended March 29, 2019 according to weekly data released by the State Bank of Pakistan (SBP) on monetary aggregates.
Government sector’s net borrowing since July 1, 2019 up until March 29, 2019 has been logged in at Rs.743.2 billion, while at the same time last year, the net loan stood at Rs.791.5 billion.
Evidently, net borrowing during the period has reduced by around 6% compared to last year.
The government sector borrowings are divided into three broad categories based on the purpose of loan, which are budgetary support, commodity operations and others.
Breaking down the total net borrowing it is noted that net borrowing for budgetary support stands at Rs.908.4 billion, net borrowing for other purposes was at Rs.804 million whereas a net sum of Rs.166 billion were retired of commodity operations.
For budgetary support, the federal government borrowed a net amount of Rs.3.8 trillion from SBP whereas provincial government retired Rs.284.4 billion, AJK government retired Rs.12.8 billion and Gilgit-Baltistan retired Rs.9.2 billion to the central bank.
Together, the total net borrowing for budgetary support from SBP adds up to Rs.3.5 trillion.
After SBP, the other most prominent support for budgetary borrowing comes from Scheduled banks, of which Rs.2.58 trillion net were retired during the period.
Rs.2.54 trillion of the total net amount was retired by Federal Government whereas Rs.34.4 billion were retired by Provincial Government.
