Govt borrows another 387.5bn debt in a week

May 15, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs387.54 billion during the week ended May 03, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs5.17 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 Rs356.9bn, while the borrowing for commodity operations stood at Rs30.91bn.

Meanwhile, a total of Rs274.03m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs5.42 trillion for budgetary support, Rs252.66bn retirement off Commodity Operations, and Rs2.91bn 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 Rs622.11bn to the central bank, out of which the Federal Government retired Rs239.47bn whereas, the Provincial Government retired Rs364.53bn, AJK Government retired Rs18.16bn, and the GB Government borrowed Rs0.04bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs6.04tr out of which the Federal Government borrowed Rs6.2tr while the Provincial Government retired Rs151.49bn.

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