Govt acquires additional debt of Rs59.7 bn in a week

March 28, 2022 (MLN): The government of Pakistan has acquired an additional debt of Rs59.7 billion during the week ended March 11 2022, which brings its total net borrowing for the ongoing fiscal year 2022 to Rs173.12 billion. As of the prior week, the government had borrowed a net sum of Rs241 billion.

According to the State Bank of Pakistan's weekly estimates in this regard, this year's overall net borrowing as of this week has decreased by Rs413.67 billion over the year as last year's net borrowing for the same period stood at Rs586.79 billion.

The government sector borrowings are divided into three broad categories based on the purpose of the loan which are budgetary support, commodity operations and others.

Split three ways between these broad categories, the cumulative net borrowing for budgetary support during the ongoing fiscal year was Rs243.5 billion, whereas Rs71.7 billion were retired off commodity operations and Rs1.3 million were retired off other miscellaneous operations.

The two biggest sources of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks. This fiscal year so far, the Central bank has been retired a net sum of Rs291.4 billion by the government. Of this, the Federal government borrowed Rs155 billion whereas, the Provincial Government retired Rs412 billion, the AJK government retired Rs18.7 billion, and the GB government retired Rs15.56 billion.

On the other hand, the Scheduled Banks have lent out a net total of Rs534.9 billion out of which the Federal government borrowed Rs568.2 billion while the Provincial government retired Rs33.3 billion.

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