April 14, 2021 (MLN): The government of Pakistan has retired Rs30.96 billion during the week ended April 02, 2021, which brings its total net borrowing for the ongoing fiscal year 2021 to Rs638.87 billion. As of the prior week, the government had borrowed a net sum of Rs669.83 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 Rs283.5 billion over the year as last year's net borrowing for the same period stood at Rs922.37 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 was Rs749.67 billion, while that for other purposes stood at Rs.6.45 billion. On the contrary, a net total of Rs117.25 billion were retired off Commodity Operations.
The two biggest sources of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks. This fiscal year, the central bank has been retired a net sum of Rs1.19 trillion by the government, out of which the Federal Government retired Rs855.41 billion, the Provincial Government retired Rs308.57 billion, AJK Government retired Rs21.18 billion, and the GB Government retired Rs.9.67 billion.
On the other hand, the Scheduled Banks have lent out a net total of Rs1.94 trillion out of which the Federal Government borrowed Rs1.97 trillion while the Provincial Government retired Rs.29.66 billion.
