Govt borrows Rs248bn debt in a week

September 10, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs247.89 billion during the week ended August 30, 2024, which brings its total net borrowing for ongoing fiscal year 2025 to Rs439.67bn, 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 Rs248.84bn, while the retirement off commodity operations stood at Rs951.06m.

Meanwhile, a total of Rs0.97m was borrowed for others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2025 to Rs680.95bn 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 borrowed a net sum of Rs44.13bn from the central bank, out of which the Federal Government retired Rs176.62bn whereas, the Provincial Government borrowed Rs246.34bn, AJK Government retired Rs14.79bn, and the GB Government retired Rs10.8bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs636.82bn out of which the Federal Government borrowed Rs660.33bn while the Provincial Government retired Rs23.51bn.

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