Govt borrowings soar past Rs4tr in FY24

April 18, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs283.74 billion during the week ended April 05, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs4.08 trillion, according to the central bank's weekly estimates.

Government borrowings for the current fiscal year have consistently remained higher in comparison to previous years.

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 weekly net borrowing for budgetary support was Rs327.8bn, while the retirement off commodity operations stood at Rs43.44bn.

Meanwhile, a total of Rs613.28m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs4.49 trillion for budgetary support, Rs405.42bn retirement off Commodity Operations, and Rs2.17bn retirement off others.

The two biggest source of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks.

This fiscal year, the government has paid off a net sum of Rs849.72bn to the central bank, out of which the Federal Government retired Rs636.72bn whereas, the Provincial Government retired Rs188.23bn, AJK Government retired Rs20.71bn, and the GB Government retired Rs4.06bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs5.34tr out of which the Federal Government borrowed Rs5.5tr while the Provincial Government retired Rs159.99bn.

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