Govt borrows Rs107bn debt in a week

September 16, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs106.78 billion during the week ended September 06, 2024, which brings its total net borrowing for ongoing fiscal year 2025 to Rs600.74bn, according to the central bank's weekly estimates.

Government borrowings have consistently remained high in the past few 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 Rs106.79bn, while the retirement off commodity operations stood at Rs0.28m.

Meanwhile, a total of Rs7.61m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2025 to Rs842.03bn for budgetary support, Rs239.54bn retirement off Commodity Operations, and Rs1.74bn 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 Rs395.3bn to the central bank, out of which the Federal Government retired Rs744.33bn whereas, the Provincial Government borrowed Rs373.8bn, AJK Government retired Rs14.76bn, and the GB Government retired Rs10bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs1.24tr out of which the Federal Government borrowed Rs1.26tr while the Provincial Government retired Rs26.69bn.

Copyright Mettis Link News