Govt borrows another Rs211bn debt in a week

August 21, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs210.86 billion during the week ended August 09, 2024, which brings its total net borrowing for ongoing fiscal year 2025 to Rs318.41bn, according to the central bank's weekly estimates.

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 Rs254.09bn, while the retirement off commodity operations stood at Rs43.29bn.

Meanwhile, a total of Rs56.24m was borrowed for others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2025 to Rs556.47bn for budgetary support, Rs236.83bn retirement off Commodity Operations, and Rs1.22bn 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 borrowed a net sum of Rs366.91bn from the central bank, out of which the Federal Government borrowed Rs127.18bn whereas, the Provincial Government borrowed Rs263.06bn, AJK Government retired Rs12.71bn, and the GB Government retired Rs10.62bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs189.55bn out of which the Federal Government borrowed Rs213.07bn while the Provincial Government retired Rs23.51bn.

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