Govt borrowing eases by Rs201 billion in a week

January 19, 2022 (MLN): The government of Pakistan has retired Rs201.3 billion during the week ended January 07, 2022, which brings its total net borrowing for ongoing fiscal year 2022 to Rs30.78 billion. As of prior week, the government had borrowed a net sum of Rs.232.08 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 Rs242.03 billion over the year as last year's net borrowing for the same period stood at Rs272.81 billion.

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

Split three ways between these broad categories, the cumulative net borrowing for budgetary support was Rs52.24 billion,whereas Rs21.05 billion were retired off commodity operation and Rs403.68 million were retired off other miscellaneous operations.

The two biggest source 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 Rs62.84 billion by the government, out of which the Federal Government borrowed Rs369.05 billion whereas, the Provincial Government retired Rs399.8 billion, AJK Government retired Rs12.27 billion, and the GB Government retired Rs19.82 billion.

On the other hand, the Scheduled Banks have lent out a net total of Rs115.08 billion out of which the Federal Government borrowed Rs131.48 billion while the Provincial Government retired Rs16.41 billion.

Copyright Mettis Link News